Technical Analysis of The Straits Times Index (STI)
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STI had formed a major top with
neckline of the Head & Shoulder (H&S) at around 3200 broken on this weekly close. If the breakdown can be sustained, the measured target is around 2750 area, with next major support at around 2950.
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STI peaked at end April – early May 2018 which coincided with the net out-flow of Institutional Funds for a cumulative amount of S$2.1 billion from May to August 2018. Such selling of Institutional Investors had already been observed in the previous posting Who Had Been Buying and Selling the Shares of Singapore Banks? As the financial sector has a heavy weightage on STI, it is not surprising that STI had been dragged down with the exiting of the Big Boys.
To negate the bearish H&S formation, STI first must rally above
3200, possibly consolidate, and then make another new high.
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This is not a buy or sell recommendation. Please do your own due diligence before making any investment decision. Read Disclaimer
This is not a buy or sell recommendation. Please do your own due diligence before making any investment decision. Read Disclaimer
