• The Singapore stock market enjoyed a strong rally on the Monday opening.
• However, the majority of the stocks have shown signs of reversal on key resistance levels.
• Further price action is needed to determine reversal or correction of the local stock market.

The STI strong rally started when prices broke the top of the rising wedge within the channel. We expect the STI to face a corrective sell down at the potential selling zone highlighted in the report on 4^th May.

Moving forward, as long as prices are trading above the support zone at 2,636.05-2,598.40, Straits Time Index will likely test the new resistance at 2,900 level.

DBS bullish upside was confirmed when prices broke the ascending triangle top as reported on our report on 27^th May.  Target price was met and will face a price reversal at the potential selling zone.

Moving forward, DBS is likely to test the resistance turned support level at $20.28 before a rebound. However, should price break the support level at $20.28, the next price zone to be tested will be at $16.65-17.17 zone.

Yangzijiang has finally rebounded from the 50% of sub-wave (iii) and breaking the top of the bullish flag as reported on 28^th May. Another point to note is that the stock has finally broken above the 200-day moving average. However, Yangzijiang met with some bearish pressure after a spinning top candlestick rejects the immediate resistance level at $1.04.

Moving forward, we expect correction ahead to test the support level at $0.96. The resistance level at $1.08 remains a key challenge for the stock to test $1.13-$1.16.

*For more detail of the Elliott corrective flat wave count, please refer to our report on 28^th May

CDL  price movement has panned out according to our expectation on our stocks update report on 4^th May. The stock actually tested the potential selling zone by forming a hanging man highlighted by our report on 4^th May.

Moving forward, the stock will face a correction toward the potential buying zone at $7.56-$7.77. Should prices reverse at $8.16, the stock will break the potential selling zone 1 and test the next selling zone at $10.04-$10.29.

ThaiBev unexpected strong rebound at $0.63 has met its resistance at $0.72-$0.74 by forming a spinning top candlestick pattern. Another point to note is that there is a potential double top formation should price break the neckline resistance at $0.63.

Should ThaiBev breaks the neckline resistance, the next level the price is going to test is at $0.55.

Penguin broke out of the bullish pennant after we release our report on 2^nd June. However, the stock quickly met with resistance at $0.545 after a bearish pin bar was formed. To add on, the following full-bodied bearish candle confirms the evening star formation and thus, the next support level Penguin is testing is at $0.520. Should this level holds, the stock will see the return of the bullish momentum. Otherwise, the stock is going to test at the lower support zone at $0.445-$0.465.

Keppel DC REIT potential bear movement has halted after a two doji formation. This signifies that the previous bearish engulfing was so strong that it may be a “one time sell-off” momentum. As such, if the stock prices break 50% of the engulfing candle which is at $2.53. The stock is likely resuming its bullish run toward $2.80