STI enters slight correction

At the week’s closing, STI closed slightly higher than last week’s closing. Noticeably, STI did not follow the rise of US indices in the past week. With the US back in its bullish mode, perhaps STI might retrace further before climbing again. On a more positive note, Singapore’s economy continues to gain momentum as the nation expects positive GDP growth in Q2. As For the recent news on the updates for Singapore’s 4G leadership, some investors are starting to speculate changes in policies which has been set forth by DPM Heng. However, an official statement released in response to that concern expresses that all policies announced are here to stay. Personally, I would focus more on the overall economic growth for this year as that would likely outshine most shocks to the system this year.

STI – Updated Daily Chart

On the Daily Chart, we are starting to notice either a sideways consolidation or else the start of a retracement back to previous support levels formed. Do note that those support levels will be less effective compared to the psychological support levels such as 3150, 3100, 3050, and 3000.

STI – Updated Weekly Chart

On the weekly chart, STI has yet to test the support turned resistance level. At this point, I would venture and guess that many investors are used to the current state of the index with much lower volatility. That is why I would advise us to take this opportunity to reallocate your capital and or to cash out to prepare for sudden price movements.

Author’s Call as of 10th April 2021

• Singapore’s economic recovery continues to drive optimism into the market but STI shows signs of bearish price actions
• The STI has left out of recent rallies again in the US market and larger constituents are not heading northwards for the past week
• Support levels (and psychological support levels) marked out in case of STI going into a sudden correction
• Support turned resistance level still untested but investors should still consider. adjusting their holdings to balance their exposure appropriately

Author’s Call as of 3rd April 2021

• Overall global market euphoria puts investors in a difficult state as upsides shrink for many counters
• STI showed signs of slowing since Tuesday and buying pressure seems to have slowed as well
• Rising wedge formation, also a bearish signal, is clearly marked on the daily chart
• Portfolio reallocation advised if certain counters are severely overbought