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Monthly Market Forecast

Straits Times Index (FTSE STI)

For April, STI made new high as it closed at 3,613.93, the index last visited this level on 7 Dec 2011. However, STI has also reached its 423.6% Fibo level with MACD (Monthly) is hovering near the upper end of its bullish, which may potentially prove to be a foppish signal. But with its Heikin Ashi bars continues trading in bullish momentum, we will continue our bullish call on STI.


Forecast Direction: Upward towards 3,700
Alternate Direction: Sideways range between 3,450


Dow Jones Industrial Average (DJIA)

Bulls and bears struggling to gain control. DJIA managed to breakout from its downtrend line (Weekly) but is struggling to maintain its bullish momentum with the small Heikin Ashi body for the past few weeks. We want to see stronger buying actions from the bulls for the index to resume uptrend.

 Forecast Direction: Sideways range between 24,000 - 24,900
Alternate Direction: Downward towards 23,400

Hang Seng Index (HSI)

Similar to DJIA, Bulls and bears are struggling to gain control of HSI. Index is trading in a triangle pattern, with bulls gaining control during the last week of trading in April. Thus, We will want the bullishness to continue translate into a bullish triangle pattern breakout. Though the monthly HSI are seeing bears in control but they are not as agressive, especially with HSI weekly MACD looking to flatten near its zero. This could possibly means the index is consolidating instead of downward trending.

 Forecast Direction: Sideways range between 31,500 - 30,000
Alternate Direction: Downward towards 29,100


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