Straits Times Index Expecting Further Weakness with Bull Trap Sighted

STI Experiencing Weakness
As US-China trade talk develops negatively, Singapore being a major trade hub inevitably is feeling the heat.

STI reached a high of 3,412.17 and reversed with a Bull Trap pattern. Adding to its woes, the index broke below its primary uptrend line today.

Similar pattern occurred in May 2013, with the index reaching a low of 2,953 from its 3,464 high.

Thus, with the bearish outlook, investors may explore derivatives listed on the exchange such as DLC or structured warrants for hedging or traders taking trades on the short side of the market.

May remained as one of the most volatile month to trade.

Disclaimer applies.

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