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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