Weekly Technical Analysis Report 9-13 March

Posted: March 13, 2015 in Stock Tips

Weekly wrap of STI: STI performed sideways this week. First day of week it opened down by 27 points. Risk appetite remained low as investors reacted to a better-than-expected US jobs report by selling stocks, mindful that the data could prompt the Federal Reserve to raise interest rates sooner rather than later and as investor’s awaited China inflation data and following a rebound in US markets.In the mid week stocks continue their downward slide following a slump in US equities, after the dollar gained amid speculation the Federal Reserve is moving close. While the index dipped marginally below the level of 3,380 near-term supports, it is expected that the Singapore market should be resilient amid the current US rate hike uncertainty and the weak Singapore dollar against the US dollar. Last day of week Market closed at 3362 and down by 10 points.STI
Strait Times Weekly Wrap
Open: 3395.36
High: 3416.39
Low: 3362.16
Close: 3362.77
Change (in points): -54.74
% Change: -4.91%
Market Forecast for week ahead: We may expect STI to slide down because it is making rounding top, even Asian market was positive but STI was down, Because It is following technical pattern. It is expected that it will touch the level of 3315 as its support level and if it breaks this level, then it may further fall down.
Weekly Technical view on STI
Support 1: 3350
Support 2: 3330
Support 3: 3315
Resistance 1: 3420
Resistance 2: 3456
Resistance 3: 3495
Technical Indicators: RSI is at 40 and CCI is at -174.
Macroeconomic factors:

  • SINGAPORE’S labour market will tighten further and the local workforce growth will slow significantly in the second half of this decade.
  • Singapore Post has formed a joint venture with PT Trikomsel Oke Tbk, which sells mobile phones in Indonesia, to tap the e-commerce market in Southeast Asia’s biggest economy.
  • Jurong Aromatics Corporation (JAC) has completed maintenance at its petrochemical complex in Singapore that had started around the middle of December.
  • China’s consumer inflation quickened to 1.4 per cent in February, beating market expectations, recovering from a five-year low in January, but factory deflation worsened, underscoring deepening weakness in the economy
  • Oil prices were mixed in Asia  as dealers weighed a strengthening US dollar with ongoing geopolitical tensions in the crude-rich Middle East.
  • Asian stocks fell to a two-month low on Wednesday as nervous markets recoiled on worries about an earlier US interest rate hike, while such a prospect helped send the dollar to a 12-year high against the euro.
  • Food Company Del Monte Pacific Limited (DMPL) was hit by a US$2.2 million net loss in its financial third quarter ended January 31, 2015, due mainly to acquisition expenses.
  • Asian stocks fell to a two-month low on Wednesday as nervous markets recoiled on worries about an earlier US interest rate hike, while such a prospect helped send the dollar to a 12-year high against the euro.
  • Food Company Del Monte Pacific Limited (DMPL) was hit by a US$2.2 million net loss in its financial third quarter ended January 31, 2015, due mainly to acquisition expenses.
  • Employment growth for Singapore citizens and permanent residents is likely to taper off significantly in the coming years and employers will continue to find it costly to hire workers, whether local or foreign.
  • Oil prices inched higher in Asia on Thursday but gains were capped as dealers fretted over an over-supplied global market after US crude reserves once again swelled to a record high.
  • BLACKROCK Inc, an associate of Keppel Corp, made a series of dealings on Keppel Land shares on Thursday.It purchased 7,000 shares at S$4.55 apiece and sold a total of 48,100 shares at prices ranging from S$4.53 to S$4.55 per share.
  • Singapore’s financial regulator will work with commodity exchanges, investors and producers to support the development of the city-state as a trading center, including the expansion of clearing houses in Asia.
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