Singapore STI Weekly Technical Analysis

Posted: May 16, 2014 in Stock Tips

Weekly wrap of STI:
STI formed a Green candle for this week and performed well as in starting it got a bit effected from the movement of the European market but later it took a up-side and made a high of 3273.95 and closed well at 3262.59

Support 1 Support 2 Support 3 Resistance 1 Resistance 2 Resistance 3
3250 3230 3200 3290 3310 3330

Technically the counter has a good support @3220 and the resistance of 3285 where the 50 Days EMA is 3164 & 20 Days EMA is showing 3181

STRAIT TIMES WEEKLY WRAP
OPEN 3253.74
HIGH 3273.95
LOW 3221.37
CLOSE 3262.59
CHANGE (In Points) 88.44
% CHANGE 2.71%

Macroeconomic factors:

  • Non-Landed private homes fall to 1.7% in April for the Resale Price. As it touched to 16 months low from Dec 2012.
  • CNMC attained a net profit of US$1.26 million (S$1.58 million) with a large jump in gold production, recovered a loss of US$0.6 million the year before.
  • United Overseas Bank Limited’s (UOB) awarded with a rating of “BBB” by Fitch rating Agency
  • Profit for CDW Holding was announced yesterday will a sharp fall of 50.4% where a year ago it was 1.41 million major reason that pull the profit was higher material cost so the earning per share (EPS) came @0.30 US cent and Revenue grew 2% to US$34.75 million
  • Sinarmas Land’s Q1 earning fall to SG$93.3 million due to weaken revenue to low land sales.
  • Earnings of Olam International for Q1 jumped more than doubled to SG$396.1 million after breakthrough of higher depreciation and tax expenses attained previous year.
  • Q1 earning for Nam Cheong Limited doubled to 71.1 million Yuan, as revenue rose because of shipbuilding segment.

Market Forecast for week ahead:
As the performance of the STI was weak in last week but for this weak it performed well and made a green candle.
Technically STI looks like it would taste for the new resistance and can approach for the level of 3280 global economic factor & market sentiment will cause the major change in the price value of STI.
Technical Indicators:
Signal line @19.83 of MACD is above the difference line @16.58 where RSI is at 61.24 CCI is performing at 109.11

Weekly Technical view on KLCI
Weekly wrap of KLCI:
KLCI formed a Long Green candle for the week and break the resistance which was stopping the price to take an up-move the price for the week opened at 1865.76 and made a high of 1883.34, closed at same @ 1883.34

Support 1 Support 2 Support 3 Resistance 1 Resistance 2 Resistance 3
1875 1865 1850 1895 1905 1920

A Marubozu Pattern was formed for the week a gap up opening was noticed on the daily chart, which gave a good upside to the KLCI. Hear the Technical Indicator support the market with a good volume. Else the CCI is @139 and the RSI is above the centre line @67.58 and is touching the overbought zone.

KLCI WEEKLY WRAP
OPEN 1865.76
HIGH 1883.34
LOW 1864.55
CLOSE 1883.34
CHANGE (In Points) 16.62
% CHANGE 0.89%

Market Forecast for week ahead:

  • Technical Indicator MACD difference line is above the Signal line so buying is expected in KLCI
  • For the coming week the KLCI can took some correction due to the gap up opening.
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