TECHNICAL BUY

Straits Times Index – Daily timeframe (Update from 6 December 2017)

*Entry Price: 3443                              Stop loss : 3339                    Take profit : 3549

Current Sentiment: Bullish

Support 1: 3377                    Resistance 1: 3457

Support 2: 3354                    Resistance 2: 3549

Price went into a minor correction as expected after the last update as the 3457 resistance area halted the ascend. Instead of seeing a deeper correction back to the 20 week moving average and 3354 resistance turned support area, buyers were readily defending the 60 day moving average and 3377 newly formed support area since 26/12/17 showing sign of strength. Moreover, the bullish follow through on 02/01/18 succeeded in closing price back above the 20 day moving average suggests the start of the next leg higher for this uptrend.

Expect the uptrend to resume next for price to break above the 3457 resistance area this time to ultimately test the 2015 high of 3549 resistance area.

Notice how the 20 and 60 day moving average has been supporting this uptrend since November 2017. As long as the 20 and 60 day moving average holds, the STI should continue to stair-step higher. Thus suggesting the 26/12/17 low of 3370 points to be the new higher low point within this uptrend.