Global leaders are starting to reorganise

There is only so much conflict can do to solve problems around the world. In fact, I would say that it is often counter productive because in the modern world we live in, many countries are interdependent and can no longer exist by themselves. Even when some countries band together, they will eventually arrive at a culture that is lacking in some areas that calls for cooperations outside of their domains. At the moment, we see governments realising that the only clear way to get out of this rut that we are in is to soften the tone and start working together in a multilateral fashion instead of dividing themselves. Though this might not last, the market just need to know that world governments are still rational to a certain extent so that the fears caused by supply chain issues and inflation can be managed and alleviated.

STI – Updated Daily Chart

We are starting to see that market is eager to move out of this small consolidation range that we rely on for the past 3 weeks or so. That said, the STI is still unwilling to make any bigger moves since there is no real good news as well except nations improving on their relationships.

STI – Updated Weekly Chart

I would like to point out that the weekly chart’s 100 and 200 weekly MA have just intersected. This could be the justification for why STI refused to head up further on Friday but we should take a look at these 2 MA in the coming weeks to see if they would cross (positive) or deviate (negative).

Author’s Call as of 9th July 2022

• Global cooperation on the rise and that reduced some concerns in the markets
• The daily chart shoes that STI is eager to exit the small consolidation zone but lacks the required incentive to do so
• Weekly chart shows that the 100 and 200 weeks MA just intersected and that might hint the trend moving forward
• investors should take caution and look out for official news for potential triggers that can reverse the bear market in the coming weeks

Author’s Call as of 2nd July 2022

• Global markets are still in a weakened state due to the war and rising interest rates to curb inflation
• The charts shows that STI is still range bound for now and is waiting for triggers before deciding to head up or down
• The moving averages in the weekly chart will soon meet and that might provide some support if there is sufficient momentum
• Suggest that investors can still deploy capital into areas that are weakened due to fear of lower profits as revenues are bound to increase this year due to the recovery as well as inflation