The Straits Times Index’s positive performance on Monday confirms bullish momentum, RHB said in a technical analysis note on Tuesday.
“The positive performance led the index to breach above the previous 3443-point resistance level,” the brokerage said. “As a result, the bearish bias we saw in 27 February’s ‘bearish engulfing’ candlestick pattern is no longer in play.”
It added that the “bulls are back in control of market sentiment.”
Based on the charts, the upside could be continued in coming sessions, RHB said, noting the index was now firmly above its 200-day simple moving average, which indicated a positive outlook.
It tipped immediate support at 3443, from the March 27 high, with the next support at 3370, which is the December 26, 2017, low.
For resistance, RHB tipped 3485, which was the March 22 low, followed by 3574, which was the February 27 high from the “bearish engulfing” pattern.
The STI was up 0.44 percent at 3465.03 at 3:50 P.M. SGT on Tuesday.