Global concerns mounts on the back of divisive news

Since February, the world started to show signs of divisiveness as views on national interests seem to conflict dominant narratives. As such, markets are also aware that geopolitical instabilities will also affect market sentiments because the world is interdependent because of globalisation. In addition to that, China is also facing lockdowns in Shanghai due to the pandemic and as this stretches out, its economy will also be strained along with international firms that are based in Shanghai. At the moment, investments around the world will take a while before it continues on an upward trend.

STI – Updated Daily Chart

After a sharp U-turn, the STI daily chart showed we are heading toward 3325.

Using moving averaging, the chart shows that the next 100 days MA is starting to plateau and might also invert eventually if we head lower in the coming week.

STI – Updated Monthly Chart

The monthly chart on the other hand, signals that the 3300 is the next support level that we should be heading towards if there are no significant good news reported about the war or the China pandemic situation.

Author’s Call as of 16th April 2022

• The international instability continues to haunt the market and affect investor’s market sentiments.
• On top of that China’s lockdown in Shanghai also gave investors reason to hold back for the moment
• The charts are getting increasingly cautious but it looks like there will be some rebound soon because of dividends paid out in May
• Investors will be piling into stocks that are weakened or those that are paying out dividends soon

Author’s Call as of 9th April 2022

• Look out for counters that are obviously overpriced during this period of time as their price volatility will be more extreme as new buyers exercise DCA
• Daily chart show that STI is heading back down and currently on track towards 3225 levels
• The weekly chart still looks like STI is stable but retreating at the moment
• Investors should take a break during this period and place advance orders for stocks that they sold during the recovery hype. Otherwise, look out for growth stocks that were left behind during the interest rate fears