STI stabilising for now and consolidating
As mentioned last week, STI might consider consolidating for the time being as the global market’s outlook remains weak for the time being. We saw in the past week that the STI trended slightly lover but rebounded on Thursday as there was some support at the technical level. At the moment there should be less activity in the market but the good news is that the potential for a huge downside is fairly small. Also, as more companies are paying out their second half or quarterly dividends, we should expect some counters to fluctuate in the near term and those counters should be given some thought if you are looking to accumulate or build up your portfolio.
STI – Updated Daily Chart
The STI bounced on the 3240 level showing signs of consolidation in the near term. However, the candle stick on Friday’s closing suggested that there was an identifiable weakness pass the 3250 psychological level.
STI – Updated Monthly Chart
I brought the monthly chart back to show that the weakness of the market is also observable at a more significant scale. Therefore, expect more consolidation or near term weakness in the market.
Author’s Call as of 27th August 2022
- The overall global market remains weak as more companies report earnings that are affected by inflation
- The daily chart shows that STI might be consolidating for the time being
- The monthly chart also supported that we are facing a significant resistance level in the near term after a failed breakout
- Investors can focus a little more on dividend paying counters as they cut dividend during this period
Author’s Call as of 20th August 2022
- Market is running out of optimism and we are likely going to consolidate or trend lower
- 3240 is currently holding but is unlikely going to be a strong support level
- The next support level should be around 3180 if the market stays lukewarm in the coming weeks.
- Investors should look at their counters and identify support levels to buy back what they have sold in the past month or so
