Technical Analysis: Singapore Stocks – Thursday’s strong rise need further tests to confirm bull run May 4, 2020 1599

  • The Singapore stock market saw a rebound starting on 27th April 2020. With last Thursday being the strongest.
  • However, key levels need to be broken to confirm the new upside.
  • Some of the short calls that were mention in the Technical Pulse has reached their stop loss level. As such, we have prepared an update on the possible technical action of the individual stocks.
  • Technical Analysis suggests that the bearish sentiment is not out of the woods and the next sell-off is greater than expected.


STI had a strong sell-off two weeks ago at 2669 region. Although there is a breakout of the base of the falling wedge, the index recovered its lost ground on the following week with Thursday being the strongest bullish candle. While the rebound from last week from 27th April onward kept the bullish momentum, the ultimate test to confirm a new bull is to break the immediate resistance level at 2671.58 and subsequently the potential selling zone near 61.8% retracement level.

Should price fails to break the immediate resistance and the 50% retracement level by end of this week, there is a strong bearish downside to retest the low at 2208.41.


DBS has a strong rally last week and the stellar gap up on last Thursday shows signs of strength after DBS released its results. However, the failure to break the resistance of 20.06 signal a bullish run that is limited in strength. Furthermore, the hanging man at resistance level shows a strong reversal signal and with the rising wedge intact, DBS will resume testing its lower band of the wedge.

To confirm the bullish upside, DBS need to break 21.00 by end of this week, or else the upside will be treated as a false breakout.


Ascendas REIT enjoyed a strong rebound after breaking the falling wedge mention on April 15th report but subsequent rebound managed to edge above 3.00 on last Thursday’s late morning but the stock closed at 2.97, below the 3.00 psychological level. Analysing the momentum, the rebound between 23rd March to 1st April was a straight-up strong impulse but the subsequent upside was rather slow which can be described by a shallow slope.

Another point to note is that last Thursday’s candle closes below the 61.8% retracement level of the sell-down. Also, the price rejected the 200 moving average line. Another level at 3.07 is a level that poses a potential threat of a renewed sell down.

The only hope of a strong bullish upside is price must break 3.11 level by mid-May, otherwise, the stock will be heading for a renewed sell-off.


On 16th April, there was a strong signal to for a sell-off after a large bearish engulfing candle emerge. However, price disregarded the signal and continued to edge upwards. Looking closer, the bullish momentum may not be as strong as the market believes as the rebound exhibit a halting of the rise by the smaller bullish candle as compared to Thursday’s strong bullish candle. Another point worthy to note is that price fails to break the top of the bearish engulfing candle at 8.08, which confluence with the 38.2% retracement level of 11.43-6.11.

Although the stock is on a strong downtrend with prices still trending below the 50 and 200 moving average, the true selling may not arrive yet. In other words, there is a strong possibility of the stock rebound at 7.50 towards the potential selling zone at 8.77 after breaking the immediate resistance level at 8.14.

In summary, the main level of the resistance level at 8.14 will determine that stock make or break in the midterm.


Wilmar close shave from our stop loss level by S$0.01 as reflected on our report on 14th April 2020 is being closely contested once again on last Thursday. In my previous report, we mention that the wave (iv) desired Fibonacci retracement level is at 50% and it has been tested twice, one on 14th and the other on the 17th April with a strong bearish dark cloud cover which sends price lower, below the lower base of the rising wedge. However, prices swiftly rebound on 28th April with a bullish engulfing candle with the subsequent candle breaking above the 50.0% retracement level of wave (iii) and 50 moving average line.

Based on the price action, there is a strong possibility where the price will have a false breakout by testing the resistance zone between 3.60-3.69 region, which confluence strongly with the 61.8% Fibonacci level. Otherwise, Wilmar will reject the 3.60 level.


Hi-P had stopped out based on the stop loss level of our report on 21st April and current price action suggest that the strong bull candle on Friday will test and break the immediate resistance level of 1.08 after a rebound from the support level at 1.00. The ultimate test that Hi-P will face is at the resistance zone between 1.13-1.18 region.

To confirm the downside, the price must close below 1.00 support level for 4 consecutive periods.


UMS had a strong upside after price gap higher on Thursday and the 4th wave of the larger degree has yet to be complete as compared to our report on 22nd April. As strong as the candle may seem, we believe the stock is heading for a topping out as the price has completed the 5 sub-wave of the minute phase with wave (v) testing at 161.8% of wave (iv). Also, 0.865 – 0.895 region will be a strongly contested selling zone. As such, the following week will be a crucial time to watch out for any signal.

The invalidation of wave 4 will come when price breaks above  0.91, which will directly invalidate the whole wave count.


Thai Beverage made an unexpected rebound after our report released on 24th April but the upside is shortlived. As the other Singapore stocks are heading for a strong rally on Friday, ThaiBev exhibit a strong bearish engulfing candle at the previous resistance level of 0.70. Another worthy point to take note is that the bearish divergence has taken place. As such, the strong downside will continue.

Another key resistance level to take note is at 0.74, breaking it will increase the probability of a renewed bullish upside.


Yanlord made an unexpected rise on Friday with a gap but the afternoon session on Thursday pushed Yanlord prices lower, back below the resistance level which resulted in the formation of the gravestone Doji candle. Another point to note is that the Divergence indicates strong selling ahead.

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