STI- The Start Of A Correction?

19th April, 2017, 12:11 AM

STI- The Start Of A Correction?sTI

The Straits Time Index or STI for short has once again fallen below the 20days moving average. From our previous post on STI about a month back it broke the 20ma but managed to recover soon after. This time round things might look a little different.

From a technical perspective, the 20ma and 50ma looks like its getting closer (which is not a good sign) and the 20ma looks like its sloping down too. It is currently at around the 50ma and the horizontal support and if those break we might see if slowly fall towards 3070 area.

Geopolitical issues between North korea and US are taking headlines. But could there be more issues than that? We’re watching and ready for the next move to come.  Goldman Sachs had an earning miss what would happen if more companies start to miss their earnings?

May is also round the corner and there is a saying sell and Go Away in May. Will that come true for this year? No one knows so let the chart tell us.

Our stop loss would be 3163 or 3190. Will update more when the time comes.

Yours

Humbly

Kelwin&Roy

STI – Broken Below the 20 Days Moving Average

22nd March, 2017, 10:50 PM

STI – Broken Below the 20 Days Moving Average

The STI or straits times index has caught our attention because it has finally closed below the 20 days moving average.

From the chart we can see that the STI has stayed above the 20 days moving average for the last 3 months and even when it tried to break down it managed to rebound from it. But for today things look a little different. STI has finally closed below the 20MA hence we should take note of it.

It also coincides with our uptrend line and the horizontal support lines. With that we might be looking at further downside if those support breaks. The STI component stocks or blue chips would be the one leading the STI downwards so one can either short the STI or look for the component stocks to short.

We’re looking at the next support of around 3076 and will update further according to market condition. We’ll use poems CFD to short the straits time index.

Yours

Humbly

Kelwin&Roy

STI

29th November, 2016, 12:50 PM
STI Nov 2016
STI Nov 2016

Many have been asking about the direction of the STI. So we decided to share our humble inputs. As you can see STI is currently being tested by that downtrend line we drew for the third time and at the same time was also resisted by that short term uptrend line. What might happen is that it could retrace back alittle to test the middle band and from there we got to see if the support holds or break. We’ll only take position to go long if the longer term downtrend line is broken.

Will give more updates on STI in the coming days.

Yours

Humbly

STI

3rd October, 2016, 2:25 PM
STI Oct 2016
STI Oct 2016

STI, currently being resisted by the downtrend line and being supported by the 50ma. What we would usually do is to short and the resistance or short when it breaks down a support. We would cover if it stays above the downtrend line.

 

Yours

Humbly

STI Update

15th September, 2016, 12:37 PM
STI  Sept 2016
STI Sept 2016

Its 3 more working days to the start of the upcoming fed meeting on 20th sep and we have seen the STI following our plan and dropping to the 200ma which is also the uptrend line. Hope you guys enjoyed the ride down together with DBS and SGX. =)

Whats next? As the meeting looms, we would prefer to go light and adopt a wait and see approach. Remember even after the meeting it doesn’t mean that markets will be stable too. If there is no hike and market rally would that be good? Does the underlying current means that the US economy is not that good? Is that something to cheer about??
If there is a hike would it be good for the market? It might have a short term pullback then start to move up?
Lets not get ahead of ourselves. We would prefer to see the chart and look for clues in it.

If STI were to break that uptrend line we might see it head towards 2722 area. We won’t be going too heavy and market is still in an overall sideway trend. So a rebound could be in place after that.

Yours
Humbly

STI

12th September, 2016, 2:57 PM
STI Sept 2016
STI Sept 2016

It’s been awhile since we updated the blog, sorry for radio silence and thanks for all your concern and checking in. We’re well just trying to get up to speed with all these change of blog address. We’re not the best at this so it took us awhile.

Well, we all know that over the weekend dow dropped close to 400 points!! What a shocker eh. Now what will happen to our STI, we might be expecting some downside movement to come in due to the drop and foresee some downside to 2844 then eventually that uptrend line which also sits nicely with the 200ma.

If there is any upside, we might see it to 2900, currently we feel that STI has more downside pressure.

Yours
Humbly

STI

29th August, 2016, 3:16 PM

STI reached our downside target as blogged on sunday. Of course we didn’t expect it to go down so fast within just a day. Remember its slow and steady for us =) .

We’re watching now to see if the support breaks and come down to the 200ma at 2803.

Yours

Humbly

STI

28th August, 2016, 3:36 PM

Following up from our previous post of STI

http://singaporehumblestock.com/2016/08/23/sti-9/

It has hit our target of 2880 or rather just one point shy of 2880 at 2779 and started coming off. STI might be in a slight range bound but we might see more downside. Looking at 2848 as first support and maybe to 2820 then.

Have a blessed week ahead

Yours

Humbly

STI

23rd August, 2016, 3:20 PM
STI Aug 2016
STI Aug 2016

We’re looking at more upside for STI in the coming days. The last few days STI came down but wasn’t as weak and refused to come down and have a nice closing today too. With that we might take a long position and would hope for STI to move up towards 2880 in which we will re plan our position again. Our entry would be one pip above today’s high and stop loss at 2825.

 

Yours

Humbly

STI

9th August, 2016, 1:40 PM
STI Aug 2016
STI Aug 2016

STI came down to our target of 2833 and overshoot a little more to 2813. We shall now use that as our support. Currently its being resisted at the horizontal resistance of 2882. If that breaks we might see it start attacking that uptrend line and if it manage to regain its footing there then we might see it retest the high of 2960 again. Lets keep a close eye on it as S&P made new high so we want to move accordingly

Yours

Humbly