Will the optimism be carried over to next week?

Last week’s market movement was peculiar as we noticed gap up and downs throughout the week with Friday’s candlestick closing with a almost solid green status. That said, I am still wary of these spike in the STI because most counters are still down at the moment. As such, be prepared for the index to retreat in the coming week as there is still little reason to buy into this optimism at this point of time. The good news is that the STI is still considered cooperating its trends and more or less reasonable for traders and investors to enter and exit thus far. This is after all a good sign as it shows how the market is going back to normalcy

STI – Updated Daily Chart

The daily chart has been rather turbulent in the last week as the activities pre and post market hours resulted in gaps for every subsequent market session. This is most likely due to big players like institutional players getting more active in the Singapore market. Looking at the daily chart, it seems to be hinting that the consolidation will continue for the time being.

STI – Updated Monthly Chart

The monthly chart on the other hand is more telling this week because the index is yet again at the bottom of the middle uptrend support/resistance line. Therefore, we should be seeing some resistance in the coming week that will likely push the index back down or at least keep it there for a while.

Author’s Call as of 11th September 2022

• The optimism on last Friday is most peculiar but many counters on the STI still remain low and are not spiking up similarly
• The daily chart last week shows that bigger players are getting themselves involved in the Singapore market
• The monthly chart on the other hand suggest that there is some resistance ahead as we are back at the ”middle” line
• Suggest that investor should hold until there is a sign of an oversold or overbought situation rather than rushing in or out of the market at the moment

Author’s Call as of 3rd September 2022

• The global inflation remains a concern and prices of commodities are still in a volatile state
• Charts are supportive at the moment but do expect further consolidation or weakness in the coming week
• The next support line at 3140 is supported by both weekly MA and daily support trend lines
• Investors who have been selling at a reasonable rate should be able to get significant discounts in the recent days and should further capitalise on them where appropriate