Let the uptrend begin?

Last week’s STI market outlook featured the potential crossing of 9 and 20 MA on both the daily and weekly charts. Right now both 9 MA has crossed 20 MA and that suggests a trend reversal from down to uptrend. That said STI did close lower than last week, as the market reacts to the poor economic performance of Singapore’s GDP. In this week’s analysis and insights, we will be focusing more on technical analysis than fundamental analysis. This is because there isn’t going to be much news announced in the coming week with regards to the economy.

STI – Updated Daily Chart

Is this trend reversal a false alarm? The daily chart is resting on the lower limit of the parallel channel drawn since the low of April. At the moment, there isn’t much incentive for STI to trend lower and breaking support levels. This is because the market has already been anticipating...