Straits Times Index – Daily timeframe (Update from 14 August 2018)
*Entry Price: 3149 Stop loss: 3273 Take profit: 3030
Current Sentiment: Bearish
Support 1: 3134 Resistance 1: 3200
Support 2: 3000 Resistance 2: 3275
The Straits Times Index (STI) fell as expected after the last update and the bearish momentum seemed to be accelerating. Instead of seeing some rebound off the critical support area around 3200 – 3189, the bears were determined to break below it. The STI fell 1.68% on 05/09/18 leading to the STI breaking below the 3200 – 3189 support area. Thus with the current bearish break, expect the bearish momentum to sustain for price to test the next support area at 3114 followed by 3030.
The 3200 – 3189 support area is particularly significant because it has been the level that kept the long-term uptrend intact since May 2017. Moreover, this support area has also succeeded in lifting price back into the uptrend on five separate occasions over the past 16 months shown by the highlighted boxes. Hence with the current bearish break below the 3200 – 3189 support area, the long-term uptrend is impaired.
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