STI is lying flat on the ground but it is a good thing

Week after week, STI is tugged sideways and no real piece of good news is coming up but STI is also getting increasingly immune by US’s corrections. A few months ago when US’s top-performing FAANG stocks are rallying, STI was completely unaffected by the hype but now STI is also unaffected when US indices are experiencing a correction. No one is sure STI will continue to hold at support levels but there is also little reason to believe that there are more potential downsides since the revenue of companies has pretty much bottomed in Q2. At the moment, moving averages are still showing weakness but the steepness of the moving averages are fairly horizontal.

STI – Updated Daily Chart

STI Daily chart continues to trend sideways but there is a slight increase in volume in the past week. STI closed slightly lower than 2500 at closing on Friday but there is a little reprieve for investors who are still waiting for recovery.

STI – Updated Weekly Chart

On the weekly chart, STI is still holding steady near the support level of 2500. The week’s candlestick is also showing little volatility in the index constituents. This phenomenon is highly unusual but it can also be a potential entry point for investors who are holding for medium to long term time horizons and aiming for higher yields.

Special Feature – Venture (V03)

Venture (V03) has performed relatively well in the recent Quarter despite selling pressure which pushed its price to the low of $12.50. Buying pressure and continued recovery of the economy suggests that Venture is heading out of consolidation and potentially heading back to the highs of $20 and above.

Author’s Call as of 20th September 2020

• STI is immune from recent corrections
• STI continues to receive support from the government for the time being and companies are all on their toes
• Technical analysis shows that moving averages are flat but are still not signaling recovery or further downside
• Singapore continues to extend handshakes with other countries to resume travel

Author’s Call as of 13th September 2020

• STI is not reacting to the supposed bounce at 2500 support level however it is still holding stable at the moment
• 3rd Quarter performance will be way more positive than Q2’s and will be priced in due time
• Technical analysis of STI suggests that the index is still tied between buying and selling pressure
• Many reputable sources have stated that STI has bottomed but the supposed rebound that follows has not happened