SGX : Weekly Technical Analysis Outlook

Posted: January 16, 2015 in Stock Tips

Opening of the STI was not in this week. first day of week STI open not good. Oil fell further in Asia, with weak demand and a supply glut putting relentless pressure on prices already at their lowest in five and a half years. Second day of week STI was in consolidation face, Asian stocks were mostly firmer after benign Chinese economic data helped offset risk aversion generated by a continuing slide in crude oil prices, while the dollar fell to a one-month low against the safe-haven yen, so nothing good happened with STI. Most Asian stock declined as the yen gained a fourth day against the dollar and commodity prices slumped. And last day of week STI was too down with 38 points. Trading Signals
OPEN: 3332.96
HIGH: 3349.19
LOW: 3291.5
CLOSE: 3300.68
CHANGE (In Points): -37.76
% CHANGE: 1.14%
Market Forecast for week ahead: This week was not good for STI. Because of continuously oil price dipping down and world economy crises. crude oil higher on Friday, holding above US$48 a barrel as  prices were well supported around current levels, although few expect a strong rebound anytime soon as global output continues to outweigh demand. If oil will take rebound then it will good for STI market. We may expect oil will take rebound then STI will be better condition in next week.
Support 1: 3275
Support 2: 3220
Support 3: 3160
Resistance 1: 3371
Resistance 2: 3404
Resistance 3: 3420
Technical Indicators: RSI is above the centre line which is supporting the uptrend for the week at 55.32 and CCI is also supportive at the level of 48.37.
Macroeconomic factors:

  • Credit Suisse now believes Singapore’s central bank will ease monetary policy in April, considering the weaker inflation outlook and subdued GDP (gross domestic product) growth prospects.
  • A sudden new-year jump in Singapore interest rates threatens to push up mortgage costs and steepen a slide in home prices. The three-month Singapore interbank offered rate, against which most home loans are benchmarked, has risen 18 basis points to 0.6392% this year to the highest since April 2010, driven by a stronger US dollar and new liquidity requirements for Singapore banks.
  • A bond index created by the Singapore Exchange (SGX) and Reuters tracking Singapore-dollar denominated bonds continues to hit new highs, outperforming the Straits Times Index (STI) for the week ended Jan 9, 2015.
  • Singapore’s non-oil domestic exports in December were expected to fall versus a year earlier, a Reuters poll found, after recent business surveys showed the global economy ended 2014 on weak footing.
  • SINGAPORE remains the favored Asean hub, where 80 per cent of multinational companies locate their regional head office, according to the latest findings of a Baker & McKenzie report released on Wednesday.
  • Singapore shares could fall by 30% on average if the collapse in oil prices and fallout from Russia’s economic woes tips the world into recession, according to Maybank Kim Eng.
  • Singapore is the third most expensive market for construction within the Asia region, according to the International Construction Cost Report, which was released on Thursday. This is despite the country having seen significant relative cost reductions over the past year.
  • Singapore’s non-oil domestic exports (NODX) expanded by 2.3% in December on a year-on-year (y-o-y) basis, due to the rise in both electronic and non-electronic NODX.

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