New Covid Drug and reopening of borders boost confidence

The US recently announced that the end of the pandemic is near as there are drugs that available soon to prevent death due to covid 19. Though this announcement does not automatically apply to everyone in the world, I do think that this medication will provide government organisations with the needed assurance to reopen further since infections are almost unavoidable with the new variants. That said, inflationary fears continues to plague the global economy as rising prices continue to cut profit margins. As for Singapore, I do feel that we will benefit from both the availability of the medication as well as the reopening of borders. In this week’s outlook, we will see that STI has broken out of the crucial resistance level on the monthly chart is heading to the next resistance level on the daily chart.

STI – Updated Daily Chart

STI will unlikely retrace in the coming week as our infection rates has currently dropped below 1, signifying that we might be resuming dining in with up to 5 pax and lifting of other restrictions. Notice that there is a critical level on the daily chart drawn out to represent the last few peaks of the STI before the pandemic hit.

STI – Updated Monthly Chart

On the monthly chart, STI has yet again rose above the halfway resistance point on the parallel channel. I am optimistic about the market at least for the coming week but will not take every spike for every counter for granted.

Author’s Call as of 6th November 2021

• Singapore’s economy will continue to benefit from the reopening of borders as well as the new COVID-19 drug (when available)
• The charts basically supports further upside for the STI as they have broke out of resistance levels marked out prior to this week
• We should be seeing STI touch 3300 resistance if the news continue to rave about the developments on the COVID-19 drug
• As a rule, do not take any spike or dip for granted, study all of your counters on your watchlist carefully so that we can make decisive trades when the market overreacts

Author’s Call as of 30th October 2021

• The Singapore market is starting to slow and the climb is also muted in view of the concerns caused by the outbreaks
• The daily chart shows that the STI is still caught under 3200 and some counters on STI are starting to retreat
• The monthly continue to show that we are “not ready” to cross over to the upper half of the parallel channel
• Buying back some stocks in intervals is starting to make more sense for investors who have sold in the past weeks.