Charts not looking good at the moment but it will pass

Yet another week of ups and downs. Singapore’s community cases(including unlinked cases) are worrying because this increase in numbers is built on top of the sub 80% of the population which had been vaccinated. Thankfully, the MTF is keeping its stance and will not change the restrictions imposed otherwise we are going to see another round of sell down as the level of hope for a recovery soon will be crushed. In today’s market outlook, we will see that STI charts are on the verge of a further downtrend so we should look at the chart in the coming week more closely for confirmation. That said, the long-term outlook is still bright for Singapore.

STI – Updated Daily Chart

STI has not performed well in the past week probably because of the fear generated from the increase in daily infections. On the other hand, retail numbers continue to be sluggish in Singapore as consumers control their spending amidst uncertainty in terms of job security and lower-income compared to pre-pandemic times.

STI – Updated Monthly Chart

The monthly chart is more worrying as the current month’s candlestick is resting under the newly drawn support line last week, which signals that the market was not confident about the situation in Singapore last week until closing. In the coming week. we will see if the reassurance from the MTF after Friday’s market close will appease investors’ worries.

Author’s Call as of 4th September 2021

• Rise in community cases continues to haunt the market however MTF will nto revert to heightened measures
• The daily chart continues to trend sideways but we are still awaiting confirmation if there is further selling from Monday
• Monthly chart is worrying but within reason, still have the rest of the month to determine the longer term fate of STI
• Best to stay cautious but as usual buying back at a lower entry will be advise if sold to take profit in the previous weeks

Author’s Call as of 28th August 2021

• STI weakened by Asian market decline and increase in community cases in Singapore
• STI back to second support level on the daily chart and seems to be holding for the week
• Monthly chart support level was lowered in view of the recent spike in cases in Singapore
• Advise against accumulation but buying back is still reasonable