STI failed to rally last week

The STI was sideways last week, attempting to rebound after few days of finding support. Like the Malaysian market, it may be a dead cat for Singapore as well. The STI failed to rally and the down trend is expected to continue because it is not that oversold, the RSI indicator is above 30. The declining RSI and Momentum indicators suggest that the down trend is strong and therefore there is a high chance of STI falling further.

This is also because of concerns on rising oil prices, which is a main catalyst for inflation. The STI immediate resistance level is at 2,950 points while support may be strong at 2,740 points. By Benny Lee