The market sees some respite as things normalise

Whether is it the political unrest, or the lockdown in China, we are starting to see that investors are yet again trying to adapt to the new normal. In the past week, we saw that there were still volatility in the global markets yet you can also see the eagerness for investors to get back into the market on Wednesday and Friday as there is honestly not much room left for a bear run at the moment. Moving forward, I will expect the market to stabilise at around the 100 days moving average and consolidate at that level until more good news are released. In the near term, Shanghai announced that live will resume as per normal from 1 June so that can be one of the major triggers that we can be looking out for SG-CN related counters.

STI – Updated Daily Chart

The daily chart shows that STI is trying to bounce from the 200 days MA and is trying to ascend towards the 100 days MA at around 3300.

At Friday’s closing, the candlestick closed just below the 3240 level which was marked out in last week’s post.

STI – Updated Monthly Chart

The middle line of the parallel channel supported the monthly candlestick, will take a look at this again at the end of the month to see if this support holds. .

Author’s Call as of 21st May 2022

• Global market is normalising again in hope of good news in the world
• Investors shows eagerness to rush back in for the uptrend ahead
• Charts are supported by 100 day MA and the middle line of the parallel channel on the monthly chart
• Suggest investors to take a look at their holdings and decide if there are overloaded on some counters and do some rebalancing and diversification

Author’s Call as of 15th May 2022

• Hopefully investors will learn that it is unwise to keep holding without the will to sell in the past week
• The charts helped us understand why the dip was so much larger than expected but it should be a good thing to those who have been selling in April
• Buying back is a no brainer at this point as the difference would certainly cover missed dividends
• Investors should shun away from assets that they do not understand.