SINGAPORE: REBOUND EXPECTED

In my previous analysis on the 27th December 2008, I wrote that there is strength in the Singapore Straits Times Index (STI) with an upper resistance at 1,900 points. The STI went as high as 1,959.95 points on the 7th of January 2009 before descending to 1,776.25 points on the 13th of January. The STI is now on the short term up trend line support level.

The STI is expected to rebound from this trend line support level and test the 1,900 points resistance level again. With the strong bullish momentum indication from the RSI, there is a high chance that the STI may be able to go beyond the resistance level and perhaps test the longer term 90 day-moving average is currently at 1,977.

However, if the STI breaks below the 1,700 points support level, then we may expect the STI continue its down trend. The support level is the support level of a correction pattern (triangle) in the long term down trend.


Daily FTSTI chart as at 12.40 PM (+8.00GMT), 13 January 2008 using NextVIEW Advisor. Click on chart to view enlarged chart.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

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