Technical Analysis: Straits Times Index November 2, 2016 18
Straits Times Index – Daily timeframe (Update from 12 Oct 16)
Current Sentiment: Bearish
Support 1: 2793 Resistance 1: 2907
Support 2: 2714 Resistance 2: 2953
The bearish bias remain entrenched in the market as price broke below the uptrend line on 12/10/16 suggesting further sign of weakness. Moreover, the 20 day moving average crossed back below the 60 day moving average recently further validating the bearish sentiment.
However, the 2793 support area proved to be a critical area to watch as buyers aggressively rejected price on two other occasions, 13/10/16 and 28/10/16.
The gravestone doji rejection off the 20 day moving average on 01/11/16 suggests a retest of the 2793 support area next and a significant close below it should usher in more selling with a target of 2714.
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Jeremy Ng
Research Analyst
Phillip Securities Research Pte Ltd
Jeremy specialises in Technical Analysis and has 10 years of experience in studying price action. His areas of expertise include intermarket analysis on the equities, currencies, commodities and bonds market.
He is also a regular columnist on The Business Times - every Monday ChartPoint column.
He graduated with a Bachelor of Science in Banking and Finance from University of London.