Let’s wait for now while keeping a lookout

The budget has just been released and it seems like Singapore is still wary about the real impacts of inflation for the lower strata of society. As such, some companies providing essential services will probably be pressured to absorb some costs and eat into their already thin margins. That said, they are providing some financial support for companies to continue on their route to digitalization so it should soften the blow to companies unable to raise prices. As for the wealthier majority, property tax is probably going to drive up rent prices but the demand should also have slowed since last year’s prices have already risen tremendously due to property prices. As of now, I feel that there should be some instability in the market until such time when the over-priced counters have found their new support.

STI – Updated Daily Chart

The daily chart looks like there is a potential correction coming as it hit the ceiling of 3450 and has not successfully broken out of it. What is also notable is that the STI often retreats right after the annual budget is announced hence, I will not be surprised if the market dips in the coming week.

STI – Updated Weekly Chart

The STI is still negotiating whether the recovery in the longer run should occur at this period of time when inflation is still a concern. The good news is that the market is is less impacted by the pandemic as compared to the previous 2 years.

Author’s Call as of 19th February 2022

• Expecting volatility and possibly a minor correction in the Singapore market
• Daily chart shows that STI just hit resistance near the marked level of around 3485
• The weekly chart look like it has just started a reversal after hitting the resistance at 3450 as mentioned last week
• Investors should have sold most of their holdings progressively in the past weeks, right now we should be planning our accumulation plans to get those stocks back at a discount.

Author’s Call as of 12th February 2022

• STI’s rally continues but does not look like it will be lasting as last friday’s candle was not conclusive
• Daily chart looks unstable and we should be expecting a correction if there is sufficient reasons or a trigger
• Weekly chart looks convincing but the stamina of STI’s rally has not been very long in history
• We are approaching over bought territory so trading should be focused on weaker counters, time to sell those that are overbought to redeploy your capital