End of Year Festive Mood Strikes
US indices retreated marginally and pulled STI down a little as Trump did not agree to roll back tariffs as of now. However, the Singapore market is also recovering from all the fears associated with Q3 reporting. Additionally, as the festive period approaches, I believe that the markets will be tamed and continue to consolidate in the coming weeks. Otherwise, it will be due to negative updates for US-China Trade talks.
STI – Updated Weekly Chart
The doji for last week’s candle stick shows that STI market was undecided last week and there is yet to be any trend reversal as of now. 3222 support held for 4 days out of 5 last week. Chart wise, there is no signs of 3222 breaking in the coming week.
As shared in past STI Market Outlooks, the rallying will continue for all markets however at a cautious rate especially for STI. The reason being that since Singapore is depending on trade as its primary revenue, it will be unwise to pump funds back into the market before the trade disputes are over. Otherwise, there will still be some form of consolidation or price actions occurring due to Quarter reports and news.
Author Calls
- STI rallying towards 3360 (Update from 3320)
- 3220 support will be first line of defence before heading to 9 weeks MA at 3175
- Market conditions are stable for a longer position as of now (Till US Elections)
- STI remains cautious for Trade talks developments between US and China
- Singapore markets shows signs of bottoming as GDP growth rises in Q3
