Elliott Wave Analysis of Singapore Exchange (SGX) – 24 April 2012

The Singapore Exchange (SGX) was trapped in a contracting triangle for about a year from Oct 2010 till Oct 2011. After breaking out from the triangle, the SGX made a strong surge which is expected. But, it was short lived and the price came back down to where it started. It then made another strong surge and once again, it came down. This time though, the retracement is capped at 50 % of the previous surge. The volume on the way up was higher than the volume on the way down.

Elliott Wave Analysis of SGX 24 April 2012

I am labelling the waves as Minor waves w-x-y-x-z with wave x either completed or is in its final phase. Minor wave z is expected next following minor wave x with a target of 7.6. This target is where z = w.

Looking at the details of the wave structure, it appears that the first minute upwards wave has completed. The minute wave 2 is either in progress or has completed. We can expect minute wave 3 next and as we know, waves three are normally strong surges.

There are a few levels of resistance to overcome. The first level is 6.9 followed by 7.3.

The MACD has flattened and is below zero level. It is a nice setup for a upwards surge.