Circuit Breaker is no longer an option
The announcement by the ministerial Taskforce on 18 June is quite conclusive. Basically, all perspectives are considered and as a country, we realize that since vaccinations are at least halfway there, we should no longer close the country up in the hope to reduce the spread of the virus to zero. Not to mention that we will eventually allow international travel again to support our economy. Besides that, we should also understand that those in the affected industries are seriously at the brink of folding due to lack of business revenue during “lockdowns.” In today’s post, we will be focusing on the signals provided by the charts for STI. That should be reassuring as we continue to recover/rebound from the pandemic’s impact on the economy.
STI – Updated Daily Chart
The parallel channel drawn since June shows that we are still supported by the lower limits of the channel. At the moment there is little need to be concerned about the domestic economy however, the US market continues to threaten market sentiments as inflation continues to threaten the global economy. Judging on the coming Monday’s market opening, we should be able to see if the impending correction in the US market will pull us down with them and if so, how severely.
STI – Updated Monthly Chart
STI is currently kept between the parallel channel on the monthly chart. At the moment, we are still below the halfway point of the channel but that would not be a problem unless our index traces the US correction in the coming days.
Author’s Call as of 19th June 2021
- A circuit breaker is no longer an option for Singapore as we embrace a post-pandemic situation for COVID 19
- Businesses and investor sentiments should be improving since there is some level of certainty that we are reopening the nation
- The daily chart shows that the index is still supported by the parallel channel after last week’s news shock due to the new outbreak
- On the monthly chart, it still shows much potential in terms of room for our economy to climb in the coming months
Author’s Call as of 12th June 2021
- Singapore might be declaring an endemic on the COVID 19 virus and will likely hope to move on from it
- Sectors affected permanently are expected to recover in terms of sentiments but will take a longer time to attract investors
- 3150 levels are still holding and markets will likely consolidate sideways for the time being
- More shocks can be expected that might cause sudden volatility to the market but otherwise, it should be positive for the time being
