We saw last week that Singapore STI hit the 20d MA resistance. It was trading lower and lower last week after hitting the 20d MA resistance. At first glance, we thought that the uncertainty and negotiation of the bail out plan between the White House and Congress was dragging the stock market down last week and we were waiting for some positive news to finalize the deal faster in order to give the market a boost.
Finally, It was annouced yesterday that white house and the congress has strike a deal and they are not submitting the bail out plan to the congress for voting. But the news did not appear to lift the market upwards, it was a bad fall again today.
STI formed a big dark candle today.
Where do you think the Singapore STI is heading to this week?
STI immediate support remains at 2,307
We are still seeing the immediate support of Singapore STI to be at 2,307 level. The 61.8% fibonacci support at 2,235 level is also crucial because breaking which will send the market down to the level of the 2003 low. That will be a scary fact to face for all traders and investors. All the gains we had for the last 5 years would vanish if that turns true.
I am seeing the 61.8% fibonacci support will be hard to crack but I am also seeing the current market likely to test this level this week because all the indicators have turned negative. MacD is turning downwards, RSI turned to 30% level and stochastic is turning downwards at 50% level.
Singapore Straits Time Index Immediate Support at 61.8% Fibonacci Level
STI is Finding New Bottom on Weekly Chart Pretty Soon
On the weekly chart, STI appear to be looking for a new low formation. STI broke the 200w MA support 4 weeks ago and it is still continuing on its downward trend.
Weekly RSI and stochastic are trending at very low of the charts, showing oversold in the market. I am also seeing the volume divergency on the weekly chart. So, my hypothesis is that the market is looking for a new low to bottom up and reverse upwards. Therefore, I am seeing the 61.8% fibonacci support might be that level.
Singapore STI Looking for Bottom
Final Verdict: STI Looks Bearish But Be Aware on Possible Bottom Level
In summary, my verdict is that Singapore STI looks bearish to continue its downtrend, there is some opportunity to short but we must be aware of the possible bottom level near the support region. The support will be out target if we are shorting.
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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