Will sanctions tame the war?

The Ukraine war still rages on and there is still no perceivable end at the moment. As such, the market has become extremely reactive to every shed of optimism and pessimism. At Friday’s closing, it was calm as Moscow continues to be receptive to talks to work towards a resolution. On the other hand, the attacks continues and does not seem to abate. This further complicated the market situations when investors and institutions second guess every outcome driving volatility up. I guess this is just how it is going to be for a while and we probably should not hope for a resolution and take on a shorter term approach.

STI – Updated Daily Chart

The daily chart shows that the market remains weak and volatile but the gap up that occured on Thursday provided some relieve to the overly pessimistic market on Tuesday. At Friday’s closing, the STI is still fairly stable but any developments of the war in the weekends will certainly affect the outcome on Monday.

STI – Updated Weekly Chart

The weekly chart however shows that we are still supported by the uptrend support line and the rebound so far might be the result of crossing the support line too quickly in the earlier part of the week.

Author’s Call as of 12th March 2022

• The volatile market shows that market players are still unsure about the impacts of the war on upcoming earnings but one things for sure and that is the war has not slowed down enough for comfort.
• The daily chart shows that after the dip on Tuesday, investors realised the overreaction and quickly bought back from Wednesday
• The uptrend support line on the weekly chart is holding for now but no reason for much optimism.
• Investors should look for short term opportunities in the market if there is an obvious overreaction in the market.

Author’s Call as of 5th March 2022

• The war in Ukraine still haunts the market with much volatility and fear, therefore we should only see a reversal when there is a light at the end of the tunnel
• Daily chart support at 3240 was crossed on Friday and the market remains weak in terms of sentiments
• Monthly chart also shows signs of weakness as we cross the middle uptrend support line
• Investors should practice caution in their trades as the world continue to evaluate the long term impacts of the situation on the market