Initially, I wanted to post my analysis just before Chinese New Year arrives but what actually happened was that my laptop hanged and stopped working all of a sudden. Yes, I didn't have a laptop to even do my schoolwork for a few days and things got further delayed as I was in Malaysia for a few days during the new year. Priority had to be my schoolwork after getting a new laptop and it is only until now when I have the spare time to blog about the STI.
And before I continue, just a heads up that I won't be able to have the spare time to blog over the next six to eight weeks as my schoolwork only get busier towards somewhere around the middle of April. Therefore, let's say it is now March and you are very eager to know where the market could be heading, I would suggest you to take a look at other blogs as they would likely provide you with something you might be looking for. I'm very sure that I'm not the only blogger posting analysis on the STI.
So, let's head into it.
Introduction
Back before we welcomed 2019, I highlighted this.
As of last Friday, 8 February 2019, STI closed at 3,202.04 points. This was slightly above 3,200 points which is required for the bulls to be in control. however, it is still not enough in my opinion because there needs to be a decisive breakthrough. The bulls must win this and it is a very crucial battle which would lead to a market downturn, if not financial crisis if the bears manage to bring the price down below 2,950 level.
What can happen in the intermediate term?
When it comes to the intermediate term, I am looking at weeks and therefore, a weekly chart of STI is used.
As I draw a blue trendline down over price with a series of lower highs, a downtrend was confirmed with lower lows as well. Just before 2019 arrived, the bulls managed to make a breakthrough by bidding higher, which caused price to start making higher lows. Further confirmation of an uptrend in the weekly chart came when price managed to break the previous high and this signal that the bulls were in control. This was why I am slightly bullish in the Singapore market in early 2019.
There was a backtest on the broken blue trendline and the bulls were strong enough to make this backtest successful. As long as price can start to rebound decisively from 3,200 level, I am looking at price reaching 3,400 level in the future. Take note that I mean only if price can "rebound decisively", which means that I want to see a decisive long bullish candlestick pushing the price as far as possible away and above the 3,200 level. This is a confirmation for me in order to be looking at 3,400 level, so do not misinterpret my words.
One thing I also learnt is to look at the US market too, especially the Dow Jones Industrial Average (DJIA). Singapore market is at the mercy of the US market when it comes to huge bearishness so do watch out for that.
