Endemic Singapore, Here We Go
Finally, we are moving towards a world where Covid is a part of the world. Now that we are going to accept this new reality, I am confident that the Singapore Economy will start to recover at a faster rate. As we advance, I think we should still be mindful about the war that is still ongoing in Ukraine. Besides the suffering and turmoil that many face on a daily basis, the war also revealed political tensions between nations and that has led to another round of talks and sometimes even threats between the groups of nations. nevertheless, we should still be rather optimistic from now on at least on the endemic front but should still be wary of what may come.
STI – Updated Daily Chart
The daily chart shows that STI has had a V-shaped recovery from the fears of the war. This time, the rally was also supported by the announcement by the Prime Minister that we can further relax restrictions due to the Pandemic. At the moment we are heading towards 3450 level but being a conservative market, we are still waiting for concrete evidence that our economy is indeed improving when companies announces better financials.
STI – Updated Weekly Chart
We had a second strong week in the Singapore market as we closed on Friday with a solid candle. Look out for the coming week to see how much more the STI have gone, bearing in mind that both the daily and weekly chart is heading towards the immediate 3450 resistance level.
Author’s Call as of 26th March 2022
- The announcement for lifting restrictions that includes an optional mask wearing in the outdoor certainly caused the market to rally from Thursday onwards but we are still unsure how high is STI willing to go
- Daily chart’s V-shape recovery signals that we might be heading back to 3450 levels
- We saw another almost solid weekly candlestick on the weekly chart but is also up against the 3450 resistance level
- Investors should have started selling but perhaps it will also be a good time to take note about there is still ongoing global political instability which might tip the scales and pull down the market abruptly
- The market recovered significantly in the past week and the STI continues to remain resilient
- Daily chart shows gap ups due to overwhelming uncertainties in the rest of the major economies
- Monthly chart shows that STI is back on track to head towards a new high if the war ceases and the world gets back on track to recovering from Covid
- Investors should start getting fund back into their war chest if they have deployed their emergency funds to buy the dips. Do not extend your positions in case of a sudden turn around.
