Straits Times Index (STI outlook for 31/10/2011 to 04/11/2011)

Posted on Oct 30, 2011 2 Comments    Posted under: Home Post, SG MarketWatch

Straits Times Index (STI outlook for 31/10/2011 to 04/11/2011)

STI rallied over the past 5 days forming a 5 consecutive days of white bullish candles. STI closed around 2909 points, facing immediate resistence from it’s 100 day moving average line. Based on current trend, the STI looks to be forming it’s next higher low.

Support: 2684
Resistance: 2909

On the technical charts, the Stocastics indicator looks to be showing early signs of bearishness. Trading volume remains healthy.

What to look out for next week?
For the STI to trade higher, it must first overcome it’s 100day MA resistence. Overcoming that level will see resistence turn into support and the STI could potentially trade higher to test it’s next level of resistence around 1997 points region.

After a strong rally, hitting resistence is imminent and there is likely to be a pullback in stock price as investors look to take profit. Watch for possible retracement and support level.If that happens, the STI could see a retracement back to test support.

2 Comments + Add Comment

  • hope the STI can continue it’s rally tommorrow!!

  • Hi Jon,

    Not likely for STI to continue its rally tomorrow as market is in overbought condition and a retracement for the bull to take a short rest will be a better scenario than surging non-stop upwards on adrenalin rush.

    What goes up fast, comes down just as fast.

    I expect nolmacy at the 20 cross 50 DMA area of 2750pts before resuming its uptrend. Likewise a break of this support might not be so good for the bulls.

Got anything to say? Go ahead and leave a comment!

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>