The STI or straits times index has caught our attention because it has finally closed below the 20 days moving average.
From the chart we can see that the STI has stayed above the 20 days moving average for the last 3 months and even when it tried to break down it managed to rebound from it. But for today things look a little different. STI has finally closed below the 20MA hence we should take note of it.
It also coincides with our uptrend line and the horizontal support lines. With that we might be looking at further downside if those support breaks. The STI component stocks or blue chips would be the one leading the STI downwards so one can either short the STI or look for the component stocks to short.
We’re looking at the next support of around 3076 and will update further according to market condition. We’ll use poems CFD to short the straits time index.