Ending with a slight positive note, will it continue?

The STI ended 2021 with much uncertainty in the market yet the US market’s bullishness provided some temporary positive sentiment to the global markets. That said, we are currently in uncharted waters because the new Omicron variant seems to be threatening all countries that have a huge amount of unvaccinated residents. In addition to that, many who are vaccinated are also anticipating that the current vaccine regime is wearing off and thus requires a booster or some new combination of vaccines to reduce the number of severe cases. In the coming week, we might be seeing STI react in a confused state because the US market has just started to correct but at the same time, the RCEP trade deal has also just started which will benefit the Singapore Market.

STI – Updated Daily Chart

We are starting to see STI consolidate with a slight uptrend. At Friday’s closing, the STI revert to 3120 which happens to be just above its uptrend support line and psychological level. The coming Monday’s reaction will be more telling as to whether STI will remain supported or will be dragged down by the US market.

STI – Updated Weekly Chart

The weekly chart shows that the STI is still supported by the 50 weeks support line which means it is still maintaining the uptrend for the year 2021.

Author’s Call as of 1st January 2022

• The STI continues to be threatened by the restrictions around the world due to the Omicron variant
• Daily chart shows that the index is still supported by both psychological level and uptrend support line
• As for the weekly chart the STI is still hovering above the 50 weeks moving average (maintain uptrend for the entire year of 2021)
• Investors investing in the Singapore Market should continue to look for value to be unlocked from matured counters in the new year

Author’s Call as of 26th December 2021

• There is an obvious uptrend waiting to happen but we are still at the mercy for more bad news and triggers by Omicron
• The daily chart shows that the move to stop sales by MTF is still relatively well received
• On the monthly chart, we can see that STI is still trying to advance ahead as well but is waiting for better news about the new variant
• Recommend investors to be more reflexive in this time of uncertainty and lower yield expectation for trades