Singapore STI heading towards 1,600 points

The Singapore FTSE Straits Times Index continues to trade sideways with a downward bias. The FTSTI is at about the same level a month ago with a volatile trading range between 1,677 and 1,960 points. It was not able to rebound as expected but instead broke the 1,700 points support level. Therefore a down trend continuation is not under way. Investors are being very cautious with higher unemployment rate and weak financial results.


Weekly FTSTI chart as at 29 January 2008 using NextVIEW Advisor. Click on chart to view enlarged chart.

The short and mid term 30 and 60 day moving averages remain flat and this means that the intermediate trend is sideways. However, the long term trend is still down with the 90 day moving average declining with the FTSTI still below it. The FTSTI is expected to continue the long term down trend when it broke the support level of the wedge pattern (S1) at 1,780 points on the chart. It looks like the STI is heading towards the next support level at 1,600 points.

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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.