The STI might be testing 3000 in the coming week

I am not expecting any sort of panic selling however the recent announcement to roll back to a stricter regiment does present opportunities for skeptics and pessimists to sell in the coming week. That said, I will also expect some counters to continue staying resilient since there were consistent buying pressures from institutional buyers in the past weeks. These counters include Singtel, CDL, and REITs like ESR, Ascendas, etc. Meanwhile, investors in the Singapore market should start setting reentry price targets if they have exited in the past weeks. Otherwise, we would still be seeing a further sideways consolidation for the index in general. Personally, I have been actively selling as I am still unsure about the pandemic situation and the global market in general. Nevertheless, we will be able to a slightly bigger reaction soon in the coming weeks for us to be able to take action more easily.

STI – Updated Daily Chart

On the daily chart, the STI tested the support level on the top of the gap but successfully bounced back on the back of our bank counters staying relatively resilient since the US Fed has yet again reassured investors that they will not be raising rates or cutting back on bond purchases until next year. All in all, I will not be surprised if the index tries to fill the gap in the coming week.

STI – Updated Weekly Chart

On the weekly chart, we can see that STI is already on a decline as it strays further away from the 200 week moving average. While this might not be very significant, I would say that we should be expecting the market tracing back as a result of rising concerns with regards to rising daily cases and recent announcements on restrictions.

Author’s Call as of 25th September 2021

• Rolling back to 2 pax instead of 5 was supported by the rising daily cases and potential havok that might occur at the hospitals
• The daily chart shows resilience last week but might be retreating in the coming week back to 3000 level
• The weekly chart also shows similar signals that there is more pessimism in the market at the moment and we should be seeing more downside
• Recommendations to investors is to stay away from panic selling and focus on buying back if you have exited awhile back for a discounted reentry

Author’s Call as of 18th September 2021

• Delta variant in addition to the laxed measures are putting more stress on investors especially in the already hard hit sectors
• Daily chart continues to show resilience however might test the support levels if there are bad news in the coming week
• Weekly chart shows that the STI is trending below 200 weeks MA and that will likely persist until the situaton changes
• Would recommend switching to a more opportunitic mindset so that we can get bargains or take profits when the market overreacts