Singapore STI - All indicators are currently supporting the down trend

The STI found heavy resistance at 3,500 points level after rallying from its major support level at 2,750 points in March. The resistance caused the STI to pull back to close at 2,979.56 today. The STI which was between the short to long term averages weeks ago now goes back under the average and this indicates that the trend is continuing downwards and the momentum indicators are currently supporting the down trend.

Although an immediate technical rebound is expected because the Stochastic indicator is below the oversold scale below 30, the STI may find short term down trend line resistance at 3,160 points. If the STI is able to break above this resistance, then there is a high chance of it testing the major support level at 2,750 points.

Article by Benny Lee