Published on 19/10/17: www.smartinvestorinc.com



Source: Nextview STI Chart as of 19/10/17 (For illustration purpose)

STI is at a critical resistance of 3350 and if it is able to close above 3360, we will have a bullish signal and medium target could be set at 3460 and 3520 respectively. However, from the weekly charts, there is a divergence spotted on the RSI. So this could potentially be a double top and if it materializes, 3280-3300 will be at sight. At the moment, this is a tough call.



Source: Investing.com US Dollar Index Chart as of 19/10/17 (For illustration purpose only)

Over at the US dollar Index chart, it seems like it is forming a reverse head and shoulder. If it breaks above 94 level, we could likely see a resumption of the US dollar strength.

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