STI Outlook - As of 24th July 2021

Really surprised to see STI almost unfazed by P2HA restrictions

So we are back to the phase 2 heightened alert or in short, no dining out no matter what. To be honest, I did not expect the government to take such drastic measures since they sort of piloted the 5 pax dining rule for those who have been fully vaccinated. However, it happened and after the announcement on Tuesday, I am sure many investors in the SG market were shocked that the markets did not react as badly as expected. Instead, the market rebound strongly on Thursday. I guess the market might have gotten used to the sudden change in measures to combat new outbreaks? Anyway, more companies are reporting their 1H 2021 performance in the coming week so we should be seeing more positive news since the country is recovering from a low base performance in 2020.

STI – Updated Daily Chart

STI closed above the downtrend parallel channel but the Friday candle closed slightly lower than Thursday’s closing

Zoomed in daily view

Overall, on the daily chart, I still remain positive for the overall uptrend in Singapore, however, I do expect some volatility in the week ahead if there are updates to the outbreak in Singapore. Otherwise, just enjoy the ride and continue to take profit to withdraw some capital from the market if possible.

STI – Updated Monthly Chart

On the monthly chart, we are still supported by the uptrend support line but the small candlestick also shows that there is less activity so far in the month of July. Hopefully, we can close above the major support level marked by the thicker dark green line.

Author’s Call as of 24th July 2021

The STI demonstrated resilience in the face of sudden reverting to Phase 2 Heightened Alert

Markets continue to consolidate sideways but daily chart shows that the market is well supported and trying to break out of a short term downtrend

Insignificant changes to monthly chart

Withdrawing capital from stocks and waiting for a lower reentry price is encouraged if you are low on free capital

Author’s Call as of 17th July 2021

KTV cluster slows down reopening plans and heightened alert for people and businesses alike

Chart wise, STI is still unable to breakout from the downtrend parallel channel although remains close

On the monthly chart, the index is still supported by the intermediary support line

Selling first to mark your positions and planning ahead to buy back at a cheaper price might be a good strategy as this point