A quick look into the Singapore Straits Times Index (STI) and the majority Financials sector does not bode well, despite an earlier Moderna vaccine sparked rally. We look into a yet again the sputtering bullish effort. In the daily STI chart below, it is. Clear that there have been a series of lower highs and support at lows. The indicator system is showing a bearish scenario, and the past three days candlestick patterns are no where near bullish, particularly after a relatively large gap up. It appears set to close the gap soon, and by next week Wednesday, should finally break the 2525 support, and slice through the critical support at 2500, only to (finally) complete the trend change pattern.
DBS daily chart below shows a similar picture except that it is forming a rising wedge, with a high probability for breakdown. MACD is flattish and waiting for break out…
UOB is slightly more bearish than DBS, having broke out of the triangle and unable break upwards despite a gap up. Its MACD has already crossed into bearish territory. Closing the gap is already on the way (Gap & Close).
OCBC daily chart below is less bearish than UOB, and price has not broken down of the trend line yet. Candlestick patterns and a Gap & Close attempt does not bode well for OCBC, despite MACD holding up just.
Just an early heads up that the STI and it’s major components are suggesting that a breakdown and bear trend is imminent, particularly clearer by next week Wednesday. Previous attempts to counter the bearish bias
Heads up and watch out!!
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