Against the tide but the next ebb is coming

STI has gone against the volatility of the global markets and have risen significantly in the past week to 3821. That said, any anomalous behaviour should not be taken lightly or for granted. Surely, the Singapore market is rallying due to the rising interest rates that benefits our heavily weighted bank stock counters. Besides that, most constituents on the STI are still staying resilient but are not moving as much for the time being. Seeing that the omicron virus has not caused too much distress to the healthcare system, now we will have to wait for more news on the reopening of VTL travel with other nations and the further revision of restrictions for both domestic and international travel.

STI – Updated Daily Chart

The daily chart exposes that the STI uptrend is met with a resistance line at 3280. Although at Friday’s closing the candlestick is solid, it might still be facing a significant obstacle should it advance ahead.

STI – Updated Weekly Chart

The weekly chart on the other hand also shows that it is also heading towards the next downtrend resistance line which is around the 3290 level. This means that we are still not out of the woods after last week.

Author’s Call as of 15th January 2022

• STI continues to stay bullish despite global volatility
• Daily chart shows that we are heading towards 3282 resistance
• Weekly chart also shows that we are heading towards 3290 resistance
• Advise to investors to keep their hopes at bay for a continued recovery but can still hold more of the depressed stocks in hope for a further rally when travel restrictions is reduced.

Author’s Call as of 8th January 2022

• Investors are still vary about COVID affected sectors but other sectors like banking are advancing ahead in the past week
• In the short term, STI shows a slight positive outlook but we are still unsure if it can hold its position above 3200
• Approaching the uptrend “division” of the monthly chart, investors are still unsure if Singapore can live with COVID
• 2022 has so far been positive as the MTF has not raise restrictions for the community at the moment despite the higher transmission rates of the new Omicron variant
• Investors should consider shaving their holdings once again if they have used backup funds to join in the ride after the major dips to secure some profits and get back some of their capital