Chart Source: Poemsview 3rd Aug 2018
After a nice rebound for about 3 weeks, our Straits Times Index saw some cracks and slammed down quite a fair bit yesterday.
Banks took a hit as the impending trade wars could hurt their books and with DBS reporting results which missed the marked, traders took the chance to offload OCBC and UOB.
From our previous plan, Straits Times Index did a pull back after hitting our 3334 region and after retracing managed to fight back to come back to resistance as planned. So what are we planning now?
- 3335 area is a resistance we must respect. Breaking and staying above this might take us to our next possible target of 3410.
- If the support at 3283 region don’t hold then we might see it test 3224 region.
- STI broke its short term uptrend line and is below its 10ema which isn’t a good sign if you’re on the long side.
- We’re watching for the breaks and will act accordingly.
We hope our timely updates of the Straits Times Index has been useful as we manoeuvre this market without falling into unnecessary traps. Preserving our capital is important as we await for clearer market directions.
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