STI is at a high risk of correction
To say the least, run away prices of commodities are triggering a worldwide supply protectionism. Such rising concerns not only causes affordability concerns for consumers but also thins profit margins for almost all companies. Since money printing is no longer going to help the economy, the next step by global political leaders will largely determine how investors will react in the next few months. As for the Singapore market, I would expect a correction coming soon if there are more blows to the commodities market.
STI – Updated Daily Chart
I adjusted the parallel channel a little to accommodate Friday gap down and solid red candlestick. Though I am not going to bet on a clear cut bounce based on the prevailing technical analysis of the STI.
STI – Updated Monthly Chart
Unsurprisingly, the STI is back to the lower support levels as drawn on the monthly chart. Right now the markets are probably in a selling mode unless there are positive triggers in the coming week.
Author’s Call as of 11th June 2022
- An impending correction is felt at a larger scale as we see investors become less aggressive due to rising prices
- Charts are also pushing back to the edge of support levels indicating that confidence in the market is below average
- A further dip in the coming week will throw STI into a bear market
- Investors should push buy prices lower if they can afford to miss some orders or are getting low on funds in the coming week
Author’s Call as of 4th June 2022
- Investors caution as the market starts to take profit after a tremendous run in the Singapore market
- Daily chart shows that the market is still unwilling to push for a trend reversal at the moment
- Weekly chart also does not support any sign of rebound
- Investors should start looking out for counters that are primed for recovery but are also affected by the fear of rising costs.
