Singapore STI: May test 3,300 resistance level

The FTSI broke the slight resistance level of 3,200 points last week and this shows that strong momentum that I wrote about last week is still strong. The FSTI closed at 3,189.20 points last Friday. Currently the FTSTI is above all the short to long term moving averages and this indicates a change in the down trend is taking place. Once the declining long term 90-day moving average starts to change its course, then a new trend, which is the up trend is developing.

The FTSTI still has to break 3,300 points resistance level to continue the up trend. The momentum of the trend is still quite strong with the ADX indicator rising and the RSI indicator staying above the 50 level. Support level maintains at 3,000 points, with a short term support level at 3,150 which is not that strong. By Benny Lee