Tag: STI

FTSE Straits Times Index

Outlook:
The outlook of the FSSTI index has turned bullish as it is now trading above the cloud. It rebounded from the low
of 2,420 on Oct 20, and is now testing the overhead gap resistance zone of 2,890-2,960 that formed since Mar 20. A correction could occur if this index is unable to break through this gap resistance zone, but it has to stay above 2,710 to maintain the bullish trend. The momentum indicator, the MACD, has been rising steadily and the slow line is moving higher towards the zero line. The RSI is also near the overbought region. We could see this index moving higher towards the next resistance level if it can penetrate above the gap resistance zone.

Strategy
Investors could look to buy on dip when this index pulls back near the 2,710 support zone, and use 2,670 to control risks.
Support: 2,710 / 2,580
Resistance: 2,960 / 3,110

Analyst
Wong Shueh Ting, CFTe

FTSE Straits Times Index

Outlook:
A bullish engulfing reversal candlestick pattern was spotted last week when the FSSTI index retraced to the key Fibonacci 62% correction point of the Mar-Jun 20’s rally. This is a good sign and could hint of a potential bottom at the moment. This index is going to test the overhead cloud resistance at 2,800, and a breakout would turn the outlook for this index positive for the first time since Feb 20. However, if the FSSTI index cannot break through the cloud resistance, a decline would be expected. The MACD is now moving higher towards the zero line, suggesting a bullish momentum ahead.

Strategy
Investors can accumulate as the market could have bottomed last week. Sell on rally when the index approaches and cannot break through the cloud and gap resistance.
Support: 2,420 / 2,210
Resistance: 2,800 / 2,955

Analyst
Wong Shueh Ting, CFTe

FTSE Straits Times Index

Outlook:
A price correction that started since early-Jun 20 has brought the FSSTI index lower to the key Fibonacci 62% correction point of Mar-Jun 20’s rally at 2,448. There is an intraweek candle that has just broken above the triangle pattern, but we would like to see a firm close above the upper triangle’s declining trendline at the end of this week to confirm the validity of this breakout. The MACD is still bearish at the moment, but the histogram is still moving higher, suggesting potential upside ahead. Once the breakout is confirmed, this index is likely to
move higher and test the overhead cloud resistance at 2,800.

Strategy:
Investors could buy on breakout once the triangle breakout is confirmed, and could use the previous low of 2,448 to manage the risks.

Support: 2,448 / 2,210
Resistance: 2,740 / 2,840
Analyst
Wong Shueh Ting, CFTe

FTSE Straits Times Index

Outlook:
The outlook of the FSSTI index is still bearish as it is still trading below the cloud. This index could be currently consolidating within a triangle pattern. The lower triangle support of 2,478, which is also near the Fibonacci 62% correction point of Mar-Jun 20’s rally, is providing support at the moment. There is also a bullish conversion and base line crossover that hints at potential upside. A triangle breakout of 2,575 is necessary for this index to move higher and to test 2,780. A violation of the 2,478 support would suggest a deeper correction. The MACD is still bearish at the moment, as both of its lines are below the zero line, but there was a bullish MACD crossover earlier.

Strategy:
Investors could accumulate and buy on breakout when
this index breaks above the triangle pattern.
Support: 2,478 / 2,210
Resistance: 2,780 / 2,840
Analyst
Wong Shueh Ting, CFTe