STI Outlook - As of 26th January 2020

STI Retreated after 3280 resistance

The last trading week ended with a solid green candle and closed at 3280. This is consistent with the market outlook last week. Momentum might persist but seeing how the US has hit 3330, there should be a correction happening soon. Previously, STI is supposed to have reached 3280 levels sooner but since now it hit 3280 at the brink of a correction, we will need to see how it goes in the coming week for more signals ahead.

STI – Updated Weekly Chart

STI hit resistance at 3280

Singapore is primed for downtrend following the bounce from 3280. Currently, news on Wu Han coronavirus is exerting pressure on transport, f&B and most service industry. Looking at the individual stocks, you will be able to find potential entry points. Do purchase your shares in tranches in the case of further negative news pushing prices lower.

9 & 20 Week Moving Averages supporting STI uptrend

Watch out for 3227 and 3200 support levels

The correction will continue but STI has to drop below 3200 before trend reversal is confirmed. The budget 2020 on Feb 15 will likely offer a boost to many businesses especially those affected by the slowing of economy in 2019.

Author Call as of 26 Jan 2020

STI going through correction (supported by Wuhan Coronavirus)

Next support levels at 3227 and 3200 according to 9 and 20 weeks MA

Overall STI is still in long term consolidation and will unlikely breakout due to global economy disability

Author Call as of 19 Jan 2020

STI hit resistance at 3280, (momentum slowed on Friday)

US indices also showed a slower rally on Friday (brink of correction and profit taking)

1 more month to make Full year reporting and Feb 15 Budget 2020

The market might have less attention during the CNY period