– First Ship Lease Trust (FSLT) staged a breakout above the downtrend line 2 weeks ago.

– And this breakout was confirmed shortly when FSLT pulled back to test the resistance-turned-support before heading higher. At this juncture, the rally has broken past the 50-day moving average.

– We expect FSLT to rise towards the 1st resistance at S$0.925 before the rally weakens for a temporary consolidation.

– Our confidence in its underlying strength is derived from both the RSI and stochastic indicators which are on the uptrend, as well as the bullish candlestick formation on 27 Sept and 10 Oct.

– 1st resistance at S$0.925, 2nd resistance at S$0.98, and support is set at S$0.83.