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.
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