Singapore Stock Exchange Technical Analysis – 24 Feb 2013
Singapore Stock Exchange has been struggling to go further up after reaching a high of 3319. It has been hovering around this region for about 2 weeks now. In our previous Technical Analysis of Singapore Stock Exchange (STI), we said that a possible target for the top in STI is between 3209 and 3321. It appears that STI has found a top at 3319 for now.
Here is the updated daily chart of Singapore Stock Exchange. The MACD is still declining with every rise in STI indicating that the momentum is still on the way down which is a bearish sign. The other point to note is the buy volume which is also still on the way down. Another bearish sign.
Here is the daily chart of Singapore Stock Exchange with the zoomed in view of the more recent price bars. It is likely that the wave down from the top of 3319 is a wave 1 of Minuette degree and the mostly sideways movement since then is the corrective wave 2. This sideways movement is due to the market waiting for direction. The bears and the bulls are equally strong here.
The bias is to the down side with more selling expected. But there is likely one more push up to 3310 – 3315 region before the resumption of selling. On the other hand, should volume pick up and the price breaks through the 3320 level, the next target would be at 3400.