Singapore STI: Heading South

The Singapore market was marred with uncertainty last month with the FTSTI struggling to test the 3,300 points resistance level. The FTSTI closed at 3,160.78 points after only managed to reach a high of 3269.88 points about 3 weeks ago and recently tested the support level of 3,100 points.


The daily chart pattern is forming (not completed as of today) a head and shoulders pattern. The head and shoulders pattern signals price has reached the top (in this case the short term trend). Momentum indicators like RSI and MACD are indicating weak momentum in the up trend and even the volume is declining. The FTSTI is expected to head south to test the immediate support level of 3,100 points and if this support level does not hold, the only technical support level is a psychological one, which is at 3,000 points. Resistance level remains strong at 3,300 points. By Benny Lee