Global recession coming soon?
There are reasons to believe that a recession might be on the way. Firstly, the inflation issue is really affecting the most basic food items like oil, sugar and poultry. Secondly, global investors appetite is still low because of geopolitical instability. The only doubt right now is to determine how long the war will persist or when would it abruptly end. for now, I would be keeping my head low for counters that have not been moving a lot in the past 2 months. Also, it might be a good time to consolidate your assets again and see how you can further optimise your holdings during this period of uncertainty.
STI – Updated Daily Chart
STI is still unable to break out of the resistance line on the daily chart and as far as moving averages are concerned, the STI is still floating above the 200 days MA but has some way to climb before it reaches the 100 days MA at 3300.
STI – Updated Monthly Chart
We still have 2 more days in the month of May so lets see if the candlestick will close the middle line of the parallel channel at closing on the coming Tuesday to see if the monthly chart is hinting further bearing movements.
Author’s Call as of 28th May 2022
- With inflation hitting basic food supplies around the world, we seem to be heading towards a recession
- Charts are also not providing any comfort for now because of the range bound situation on the daily chart
- Company around the world are getting less and less investible for the near term so caution on buying in on counters that are supported by sentiments
- Suggest that investors consolidate their holdings for now and continue to focus on company fundamentals and the overall prospects of their industry and size of economy
Author’s Call as of 21st May 2022
- Global market is normalising again in hope of good news in the world
- Investors shows eagerness to rush back in for the uptrend ahead
- Charts are supported by 200 day MA and the middle line of the parallel channel on the monthly chart
- Suggest investors to take a look at their holdings and decide if there are overloaded on some counters and do some rebalancing and diversification
