Technical Pulse: Straits Times Index August 7, 2019

 

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.

 

CHART LEGENDS

Stochastic Oscillator

Red line = % K Line 3

Blue line = % D Line 3

Periods = 14

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Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 9 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory and Supply & Demand strategies as he believes that history plays an important role in how the market is reflected in the future.

He graduated with a Bachelor of Economics and Finance from University of Murdoch.

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