I have seen Dow Jones is falling down , Straits Time index is also gap down on a triangle formation, Hang Seng Index also incurred a big loss and gap down too. The overall market sentiment is bad now.
From my experience, Singapore Exchange (SGX) always follow the trend of Straits Time index. As I am looking for candidate to short now, SGX immediately appeared in my mind.
SGX has been trading below all the MA support lines now. That’s a sign of a bearish chart. We can also see lower high and lower low formation in the 1 month. That’s the 2nd indicator of a bearish market. I also notice this chart looked similar to the DJ chart I was looking earlier.
Immediately, I plotted the Fibonacci lines on SGX. To my surprise too, the counter is trading near the 61.8% Fibo support line which is 7.53. This is again similar to the DJ chart again. This is a sign of correlation or just coincidence.
I tend to believe that combining all this analysis, the charts speak by itself. There is bearish market sentiment and I also tend to believe that SGX will break this 61.8% support line like the Dow Jones.
I will be monitoring SGX for the support to give way and short it with a target at the previous low.
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.
