Effective Technical Analysis Class Forecast - Expecting Short-term Bullish Bias

Straits Times Index

We held our latest Effective Technical Analysis class on 7 Aug. Above is the chart we analysed together after the class.

STI is trading nears its channel low with momentum indicator MACD also trading nearing its lows, we have expectations that selling is likely to exhaust. 

Thus, we have a short-term bullish bias on STI, with alternative bias of STI breaking below Channel

Wishing all great weekend ahead.

ThaiBev Saw Strength Among Sea of Red

ThaiBev (Y92)
Despite Singapore market experienced sell off today, ThaiBev broke above its range after earnings announcement. 

Smart Money has been with the stock since the stock broke above the red downward trendline. This can be seen from our RS indicator as it stayed above zero line since the red line break-out. RS above zero indicates the stock is outperforming the index.

Upward momentum is expected to continue. Thus, I'll be on a lookout for pullback for trading opportunities.

RS helps us identify stocks that outperform the market which mostly has a better demand factor for potential further upward move.

Disclaimer applies.

SSE to Retest Range Support

Shanghai Composite (SSE)
Despite US President Donald Trump tweeted that tariff will be delayed on some imports from China until 15 December, Shanghai Composite's rally was resisted by its support-turned-resistance level at 2,830. 

As index is unable to clear its overhead resistance, we have a short-term bearish bias on SSE, expecting the index to trade within range and retesting its support at 2,735.

The downtrend line (Red Line) is key trend line to break if price is to resume its uptrend.

Disclaimer applies.

DBS Trading Towards S$24.00

DBS (D05)
DBS broke key support at S$25.00. With price experiencing steep outflow and weaker than market performance, DBS is expected to trade towards S$24.00.

MACD continues to trade in bearish momentum.

Trading above S$25.22 will falsify above analysis.

Disclaim applies.

STI Forecast Review and Effective Technical Analysis July 2019 Class

Straits Times Index Review
During the last session of our Effective Technical Analysis Class we forecast together on STI trading direction. 

STI traded inline with our analysis, using the founding technical analysis principles and basics of trend and momentum we learnt.

In conjunction with SGX, we will be conducting our August class tomorrow , we will again be learning and discussing the next phase of STI trend and direction.

More info on class and registration.

DBS Expected to test First Support

DBS (D05)
We saw a change of character during yesterday's trading session. We are expecting further downside on DBS with first support at S$25.80-S$26.00 zone.

HSI Expecting Further Weakness

Hang Seng Index (HSI)
We are expecting further weakness on HSI as index broke below a Key Support, we are expecting HSI to trade towards first target level at 27,000.

Notice technical indicator MACD and FFI turns negative and bearish. If bearish momentum perssit, next target level will be 26,500.

Learn more about technical analysis at our next class held at SGX Academy. More Info.

Disclaimer applies.