• The Singapore stock market remain supported after the sell-down in Mid-June
• The market enters July with a touch of positivity and we should see a mild rebound in the next few periods.
• However, certain Singapore stocks may face further downside pressure as indicated by the technicals.
• The Singapore market is likely to be ranging for a period from now to end of Q3.

The Straits Time Index weekly chart has seen some uptick but prices remain below the key resistance level at 3,000. Ever since the sell-down started in March, STI fell below 2,500 for the first time since 2011 and although it rebounded like what was mentioned in 27^th April 2020 report, where prices rebounded near the support at 2,305, the 161.8% expansion level of sub-wave 3.

Last month, prices had a strong sell-down below 50% of wave 3 but as of last Friday, a bullish engulfing candle was seen at the lower support level of the channel. As such, we see a high probability of STI testing the resistance zone between 2,900 and 2,954. Once the 50% level is broken. For the market to resume its bullish outlook, the Straits Time Index needs to break above the 3,000 psychological level minimally. Otherwise, the upside will be seen as a corrective action.

The daily chart presents a clearer picture with prices well supported above 2,636.05-2,598.40. As such, we believe that the index will test the resistance zone at 2,900, which is in confluence with our weekly chart analysis.

STI has also broken out of the falling wedge on Thursday together where the support and the rebound was the strongest in the past 2 weeks. However, near-term resistance level at 2,692 remains a strong obstacle to be cleared. 

DBS group share price rebounded at 17.31, which is aligned to our past report in 18^th March. However, we are cautious as we take this rebound as a recovery of the Elliott wave analysis. Technicals indicate that there might be another extension of wave C. First the stock closed below the resistance level of 22.50 after intense selling 3 weeks ago.

As long as the stock stays well supported above 20.00, the stock will be safe with the bulls and it is likely to test the resistance zone at 25.00.

However, should DBS fail to clear pass 22.50-23.24, DBS will form a complex corrective flat pattern which sees prices ranging from 22.50 to 20.00 range.

AEM Holdings had a strong rebound on the 30^th of June after breaking out of the falling wedge within the bullish flag. We issued a report on 1^st July stating that there is a bullish upside to test the higher resistance zone at $3.35-$3.41. However, the momentum did not last and was ranging for the next 3 consecutive periods with dojis candle in place, signifying a halt.

The falling momentum has increased the probability of a complexed corrective wave of the double three and we should see price testing the $3.00 psychological support before a rebound to test the next resistance zone at $3.35-$3.41.

ComfortDelGro initial sell-off on 10^th June was met with a strong piercing line candle which we had mentioned on our 15^th June Singapore stocks update report. The stock as expected went back to test the resistance zone 1 $1.64 and $1.68and the next sell-off occurs once again.

From a bearish flag/channel, it evolved into a rising broadening wedge which sees the stock plunging further as the pattern is considered a strong continuation pattern. Furthermore, the bearish flag within the larger broadening wedge sent a signal that the stock will fall further to test the support at $1.32-$1.36. Should that level be broken, we would see further downside to 161.8% Fibonacci extension level at $1.15.

Genting Singapore has seen some upside as of late last week but the stock remains bearish as prices are still trending below the 200-day moving average and the Friday’s candle did not manage to close above the 50-day moving average, amid low momentum and pressure.

The formation of the larger head and shoulder formation and the bearish flag at the right shoulder gave us a signal that Genting is getting ready to further collapse towards 0.625 which we mention in our report on 30^th June.

Hi-P will enter into a complex double three pattern after a weakening momentum is seen after 26^th June 2020. Same as AEM, we would see the first rebound at $1.00 region and should price fails to break $1.15, we would see another round of correction back to $1.00.

To add on, the resistance zone 1 is a crucial zone as failing to break will means a truncated sub-fifth wave and usually the following impulse wave will be much stronger as it lacks the momentum.