The STI is still in the consolidation zone

After last week’s attempt to break out of the consolidation zone, the market returned back to the lows of 3090 during our short week where it then rebounded slightly on Friday. What we noticed is that quite a few counters in the Singapore market might have bottomed but some are still haunted by short sellers. During this period of time, many investors are still waiting for lower prices to accumulate or they might have been divesting if some of their holdings fail to show any potential to climb in the near term.

STI – Updated Daily Chart

We are currently slightly below 3100 which signals that investor’s confidence has dropped roughly 50 points or 1.5% compared to last week. The daily chart has not been very telling so we should take note of the 3080 and 3055 level to see if there are further downsides beyond those levels.

STI – Updated Weekly Chart

The 100 weeks MA did cross the 200 weeks MA last week but from the looks of this week’s candlestick, it is likely that the 100 weeks MA will trend lower than the 200 weeks MA next week if the STI was unable to rebound sufficiently.

Author’s Call as of 16th July 2022

• The lack of a positive stimulus has led to the STI heading back to the lower ends of the consolidation zone
• The charts are Not showing much details on the trajectory besides hinting that the 100 weeks MA did not have enough support to cross the 200 weeks MA
• looking at 3080 and 3055 level will help to see if there will be further downside
• Stocks that have bottomed might start to rally again soon if there are good news otherwise many investors might be waiting for looking at particular counters that have depreciated significantly without concrete reasons

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