My last STI weekly stock market trends predicted that Singapore Straits Time index was facing some bearish forces. It indeed broke the support and also gapped down to break the year low formed in March. I am also predicting that breaking this March support will be very bearish.
Let’s take a look at the Singapore STI weekly stock chart now!
STI Weekly Stock Market Trends
Breaking gapping down to break the year low at 2,745, STI did not continue to dive further down. Based on technical analysis, support will turn resistance once it breaks. So, you can see that STI was having some consolidation at the 2,745 level for the consecutive 2 days. 2,745 is now the resistance.
We also observed that STI formed a dragonfly doji on Friday. Wow, that is a bullish reversal signal based on candlestick formation. However, my opinion is that it may just be a weak reversal to re-test the resistance level again. Overall market trend is still bearish at this point of time.
ADX continue to pick up strength to signal a continued down trend. MacD is heading downwards and some RSI rebound may signal just a technical rebound to test the resistance.
Based on current observation, bear still continue to out win the bull. Plus, Olympics will be over on the coming week and there might be some turburent in the China market which can hit the regional markets as well. Another concern is coming from the US if the US government does indeed send some prescription to the sickening Fannie and Freddie brothers. We may see the market heading further down.
My take, 65% downtrend and 50% sideway consolidation for Singapore Strait time index. So, shorting at resistance level can be a good trading strategy for the coming week.
Singapore Straits Time Index STI Weekly Stock Market Trends
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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[...] Singapore Straits Time Index Weekly Stock Market TrendsMy last weekly stock market trends predicted that Singapore Straits Time index was facing some bearish forces. It indeed broke the support and also gapped down to break the year low formed in March. I am also predicting that breaking … [...]