Technical Analysis: SG market outlook Rally after rally. Are we looking to break the decade high at 3,900? April 19, 2021 215

  • The Straits Time Index has rallied beyond 3,000 points and have touch based above 3,200 in March 2021, a year after the COVID-19 sell down.
  • We forsee some halting of the advancement of the STI but the longer trend is pointing to further upsee based on the longer time frame of the technical.
  • Local bourses seeing some action nearing the crossroad and we will be updating them after our technical pulse reports.

 

The STI has edged up significantly and the ongoing ((D)) leg is the clue that STI will be heading for further upside in the near term. 3,265 resistance zone remain the key and the best estimation is that STI will likely forms a sort of consolidation within the resistance zone before continuing the upside.

 

We should see long term target of 3,500 by end of 2021

 

 

The Straits Time Index has broken out of the immediate downtrend line and the uptrend seems to be the new norm after STI continue with a series of higher highs and higher lows.

 

Initially the STI is posied to reverse and having a potential throwback into the support zone at 3,065 region as there was a shooting star formation within resistance zone 1. However, last week’s bullish candle strike back with a piercing line like formation. Hence, we are confident that the bullish momentum will likely set the tone for further upside as STI has not reached its minimum expansion target at 3,444.61. Which is the 161.8% expansion target of 2,208.42-2,839.39 and 2,420.27.

 

However, we do not discount the fact that STI will not reverse and correct lower near to its support zone.

 

 

The ichimoku indicator is showing a continuous uptrend for the STI but the indicators are showing signs of slowing and consolidation especially the Senkou-Span A and B showing a flattish momentum. Perhaps the comforting fact is that the STI last Friday emerged with a strong bullish marobozu above the Tenkan-Sen. As such, there is a clear signal that STI is ready to take on 3,262 region.  

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About the author

Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 11 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory. He believes that history plays an important role in how the market is reflected in the future.

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