Support 1: 3105.86 Resistance 1: 3413.19
Singapore benchmark equity index, FTSE Straits Times Index, has finally seen some light at the end of the tunnel yesterday after rounds of intense selling since last week. Based on the technicals, the index will most likely edge higher. Bullish hammer rejecting the base of the broadening wedge and the 88.6% of the Fibonacci level, signifies a refreshing round of buying at least till 3297.02. This is the supply zone before a downward retracement back to the base and then a strong rally to 3400.00.
Stochastic indicators also suggest that there might be a potential oversold cross over and should it happen, the bullish buying will have another strong confirmation ahead.
Red line = % K Line 3
Blue line = % D Line 3
Periods = 14