Singapore stock market started the year on a positive note. The Straits Times Index started at 2646 on the first day of trading and is now at 2791, sitting slightly above its 50 day and 100 day moving averages.
The current technical charts do not paint a picture of sustained rally at this point. The 14 day ADX is well below the 20 level mark, indicating that there is no strong trend at this stage both to the upside or downside. The index is likely to move sideways and the resistance and support is at 2800 and 2640 respectively.
The 2 day RSI is moving towards overbought territory suggesting that we will see some pullback next week. Another point to note that there the recent rally is made on slightly lower volume. This shows that market conviction is not there and it supports the pullback scenario next week.
1 comment:
I think Singapore ETF is a longtime hold.
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