STI consolidating at 3200 level
The STI index is held back at 3200 but at the moment, there is reason to believe that the Singapore economy is strong enough to support its bullish market. It seems like 2021 is a year for value and cyclical stocks partly because of the rebound from last year’s poor performance. Additionally, many businesses also took the opportunity to take loans to acquire assets and upgrade their businesses thus, increasing revenues for the business and spurring growth. That said, I am still taking a step back every now and then to review my holdings to ensure that none of my portfolio counters are in an overbought state.
STI – Updated Daily Chart
On the daily chart, I am starting to notice that STI is moving sideways potentially to prepare for the next climb. In the past week, many STI constituents did not move much as well as the market remains cautious. I would assume that it is because the US’s market rallies seem to be unsustainable and the fear of it correcting affects the STI almost consistently in the past.
STI – Updated Monthly Chart
If only we knew that STI had such a miraculous recovery since November 2021 I think many investors would have pushed the STI back to its previous highs way earlier. On the monthly chart, the index is heading toward 3500 and above however, we should still remain cautious and re-enter after a correction.
Author’s Call as of 17th April 2021
- The STI remains cautious and is staying around 3200 resistance level
- Value stocks in the STI continue to climb as the economy stabilizes and expects its further recovery
- The US indices’ all-time highs seem to be unsustainable despite a stellar performance from banks.
- Portfolio stagnation partly because dividends are coming soon in May next month
Author’s Call as of 10th April 2021
- Singapore’s economic recovery continues to drive optimism into the market but STI shows signs of bearish price actions
- The STI has left out of recent rallies again in the US market and larger constituents are not heading northwards for the past week
- Support levels (and psychological support levels) marked out in case of STI going into a sudden correction
- Support turned resistance level still untested but investors should still consider. adjusting their holdings to balance their exposure appropriately
