Skip to main content

STI Weekly Technical Outlook (7 Dec - 11 Dec 15)


Straits Times Index (STI) Technical View:
Primary Trend (6mths or more) : Bearish
Secondary Trend (1-6mths)     : Bearish
Short Term(1mths or less)     : Bullish

Trading the Singapore Market (Long Trades)
Long Term Trades : Not Preferred
Mid Term Trades  : Not Preferred
Short Term Trades: Preferred

Levels to watch:
Resistance 2: 3,100
Resistance 1: 2,950
Support    1: 2,845
Support    2: 2,740

Probable STI Movement
Preferred  : Bullish uptrend trades towards 2,950
Alternate  : Sideway range between 2,845 - 2,900

Remarks: STI traded sideway for the week as forecasted. As we observe that ROC(10) continues to be in uptrend momentum, this implies that the is strength within the last week's sideway movement and we may see a short term uptrend price movement this week.

This week will also be a crucial week for STI. As both STI's momentum indicator MACD will test its signal line and ROC(10) will test its zero line. A successful breakout for both, will lead STI to a medium term uptrend rally.

Comments on STI Technical View
Primary Trend is bearish as 55 Days SMA is trading below the 144 Days SMA, and 144 Days SMA continues to be downward sloping.

Secondary Trend is bearish as MACD continues to be bearish and trades below the zero line.

Minor Trend is bullish as ROC(10) uptrend continues but cautious as its still below the zero line.

*Disclaimer Applies

Technical Terms (StockCharts.com):
Dow Theory
Moving Average Convergence/Divergence Oscillator (MACD)
Moving Average
Trend Line
Support and Resistance
Rate of Change (ROC)

Tags

Most Popular

Wyckoff's Law of Effort

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.
Read more

DBS Group Holdings (D05): Upward Move Expectations

  DBS Group Holdings (D05) Upward Move Expectations Technically, price trading above 36.58, could see DBS Group retest  previous high of 38.55. Both Relative Strength and momentum indicator FFI are supportive of the move. Stop below 35.42 Disclaimers apply
Read more

Keppel DC REIT (AJBU): Expect price to trade towards S$2.00

  Keppel DC REIT (AJBU) Expect price to trade towards S$2.00 We have observed a decrease in technical supply at the S$1.80 support area during recent trading sessions. Furthermore, a softer interest rate outlook could be advantageous for the Data Centre operator.  Consequently, we anticipate the REIT to move towards our initial target of S$2.00, with the potential to reach S$2.20 if it breaks through resistance. Our stop level is set below S$1.72. Disclaimers Apply
Read more