Chart Source : Poemsview 29th Sept 2020
Straits Times Index has broken out of its midterm downtrend line and also has broke above its 20ema.
From technical analysis point of view, these are some promising cues which might have more upside potential. What we’re looking at is for the Straits Times Index to close above this 20ema and stay above it for the next few days. That could possibly be a bullish signal for the markets. Take a look at our Riverstone post and what happens when it crosses the 20ema.
If we see our three local banks, OCBC and UOB are currently above the 20ema while DBS is still under. Do keep a watch for it as we previously posted on it too.
We have drawn some potential support and resistance should STI be able to stay above the 20ema. Let’s hope we can see 2546 first in the coming weeks.