2580 did not hold as well, next support level at 2500 then 2436

STI has been rather sensitive in the past weeks, apparently, all of its gains in June has been wiped out by the fear of a second wave. This happened while GSPC stabilized above 3150 levels in July. As Singapore approaches National Day, investors are getting nervous because GLCs are all balancing above their support levels at the moment. This week’s STI market outlook is surprisingly bleak in terms of technical analysis however knowing that markets are unpredictable, its eventual performance might be unexpectedly good as well.

STI – Updated Daily Chart

On the Daily Chart, we are heading towards the next support level at 2500 and unfortunately, the uptrend parallel channel has since become invalid. Though there might be a chance for a spike back up above the lower limit of the parallel channel, chances are small. Nevertheless, US did close green on Friday’s closing and that eliminated yet another worry about STI opening extra red on Monday morning. Will there be some form of dressing for National Day?

STI – Updated Weekly Chart

The above weekly chart exposes the reason why STI closed at 2533 on Thursday at closing. Evidently, STI is hanging in the balance above previous lows. This might be a trough (bottom) however we will only be able to confirm it in retrospect. At the moment, we are unable to confirm if STI will trend lower because STI is already at a low and previous gains in other major markets have not excited STI in a positive way. We are awaiting STI to bounce anywhere above 2500 or 2436 based on the fibo channel.

Author’s Call as of 2nd September

• National Day approaches and it is likely for some dressing to take place
• US GDP contracted significantly, however, FANG is still performing well in the midst of the pandemic
• SG Banks are unlikely to see the light at the end of the tunnel at the moment with interest rates fractured by the Feds
• Bank dividends are cut but bank shares did not dip farther than expected (equivalent to the cut in dividends)

Author’s Call as of 26 July 2020

• STI has broken the parallel channel marked out in the previous week’s analysis.
• STI is still consolidating sideways at the moment in anticipation of flat poor economic performance.
• More businesses continue to resume gradually (including international flights)
• US indices are experiencing a mild correction as the market faces uncertainty in relation to both internal and International policies with China. (Also, FANGs are also announcing their financial results in the coming week)