Straits Times Index – [ Has It Peaked? More Room For Upside?? ]
Chart Source: Poemsview 19th April 2020
Straits Times Index or STI had a very good rebound which caught many off guard. The rebound was about 20% from the low which was slightly stronger than expected. The question is can STI move up more? Is there still room to go for STI?
Before we dive further, we’ll bring in the chart of S&P as markets still takes some reference from big brother USA.
Using the weekly chart for S&P, we feel that there might be just be more room for an upside probably to the 50ema which is around 2960 level for S&P, if it does reach around there , we have to be very very careful already. That would mean that S&P would have rebound 35% off the low which is considered a lot. But that said, we are in extraordinary times and such a bounce is also an extraordinary bounce.
So if S&P still has some upside, we might see STI slowly trying to aim for its 50ema too which is around 2720 and also the fibo 50% retracement level. If STI can rally to around that area, we’ll be looking for SHORT opportunities. The risk reward for longs now is not very favourable (in our view) so we’ll probably be patiently looking for short opportunities instead.
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