Straits Times Index -[ Time For Pullback? Here’s Why]
Chart Source: Poemsview 9th April 2021
The Straits Times Index (STI) finished Q1 2021 with about 11% gain and its the strongest first quarter of calendar year since 2012. Best of all, our Straits Times Index which was the worst performing index in Asia last year have actually came in as the second best performer amongst the 18 global stocks index! WE got a fighting spirit eh!
The key driver for STI’s performance was mainly due to the banks which takes up about 40% of our STI.
From a technical analysis point of view our STI actually closed below the 5ema which it has been closing above for the past few weeks. Well, its not panic mode for us but this might signal some pullback that is to come in the next few days or so. A healthy pullback is also welcomed as investors now complain everything being overvalued or expensive.
Some healthy levels to pullback to might be the 20ema or even that uptrend line of around 3119. If STI manages to punch above the 5ema again and break out of the current 3220 zone then it might signal the continuation of the uptrend.
Yours
Humbly
Kelwin&Roy
