FTSE ST Snall Cap

FTSE Small Cap Index: STRONG MOMENTUM 
Commetary:
 Straits Times Index (STI) has rallied pass our initial target of 3,050 and currently standing at 3,098 testing 3,100 resistance. Market is currently in a bullish mood. Traders can consider switching their focus to Small Cap Stocks for opportunities, as the FTSE Small Cap Index, which tracks the performance of the small cap stocks, set to continue its momentum and challenge its 400 resistance. 


Technical Observation:
The FTSE Small Cap index trades in a consolidation zone for 12 months since February last year. However, this 2-3 weeks of trading saw the index breaking out from 2 consecutive resistances which are signs of strength of a strong bull. These provided us with technical reasons that the current rally has strong potentials to continue.