Technical Analysis: Singapore Stocks – Stocks reversed at key resistance levels June 15, 2020 1130

  • The Singapore stock market reversed sharply on Tuesday 9th of June in-lieu of the strong sell-off in the U.S markets.
  • Stocks rebounded strongly last Friday before the markets closed for the week.
  • Technicals suggest that the market will be ranging for a short period.

 

The Straits Time Index (STI) met with a strong resistance on 4th of June and our report on 5th June suggest that the index may correct itself at the potential selling zone highlighted. True enough, the STI reverse strongly on 9th June after the index made a final attempt to test the upper bound of the resistance zone which confluence with the 61.8% retracement level of 3,233.86 to 2,208.42.

We also mention that as long as price stays supported above the resistance zone at 2,636.05-2,598.40, Straits time Index will likely test the new resistance level at 2,900

Should the index remain below the resistance zone 1, the index might enter into a prolonged range between 2,500 and 2,800.

 

AEM Holdings had a strong sell-off following our report 9th June and the price had a strong piercing line bullish reversal pattern at the support last Friday. As such, the stock is likely to head for a strong climb to wave-5.

However, there is a possibility that the stock might retest the support zone at $2.65-$2.82 should price fails to break above $3.30. Another point to take note is that the prices have close below the 22-day period moving average, which is a short term downside signal.

 

ComfortDelGro initial sell-off on 10th June was on point and we had expected a slight rebound at the lower bound of the ascending channel before resuming its bearish momentum. However, the rebound was so strong that it formed a large bull piercing line that closed above the 50-day period moving average.

As such, we are in favour of the stock re-testing the immediate resistance zone between $1.64 and $1.68. Breaking it will see price testing the resistance zone 2 at $1.88, which confluence with the 161.8% extension level.

 

Genting Singapore rebounded last Friday after a strong break below the rising wedge formation. The bullish candle last Friday closed above the 50-day moving average and it may continue to rise to test the 61.8% retracement level of $0.840-$0.735.

Should prices break the 61.8%, the next resistance is at $0.90. Otherwise, the immediate support zone at $0.642-$0.674 will provide decent support.

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