Singapore FTSE Straits Times Index: Drift downwards

The FTSTI made a technical rebound last week after drifting downwards as expected, following the decline in price of crude oil and strong rebound in the US market. The benchmark index, however pulled back last Friday after testing the 3,000 points resistance level. Today (28th July), STI failed to turn the rebound into a rally. The STI declined 12.55 points to close at 2,910.36 points.

The underlying trend for STI is still down as the short to long term 30 to 60 day moving averages are still declining. The STI managed to test the short term 30 day average last week but failed to stay above it. The longer term averages level is at 3,050 points. The RSI indicator failed to go above 50 from the rally and this means that the bears are still in control. The STI is expected to test the support level at 2,800 points because there are no new positive factors to sustain the upward rally. Current resistance remains at 3,000 points.

Commentary and Analysis by Benny Lee