Singapore STI: Range Bound with Downward Bias

Market volatility in Singapore has eased compared to the volatility last month. Investors are watching very closely to the developments in restoring the financial markets in the US. This is because the performance in the US has direct impact on the Singapore market and economy. The recession in Singapore has caused not only investors but everyone be extra cautious, especially after Singapore's largest bank DBS lays off 6% of its workforce.

After going to a high of 1,933 points, the FTSTI pulled back but failed to test the 1,473 points support level. It created an immediate support level at 1,568 points. The FTSTI is still in a down trend. The divergence between the pivot highs and lows indicate that the STI is in a correction. The FTSTI has remained flat this week, with a tight trading range between 1,636 and 1,725 points.


Daily FTSTI chart as at 4 December 2008 using NextVIEW Advisor. Click on chart to view enlarged chart.

The FTSTI is currently at 1,643.68 points. The down trend correction is expected to continue but investors would remain cautious. Therefore the FTSTI is expected to be in a range bound with a downward bias. Resistance level of 2,000 points previously has been revised to 1,800 points and support revised from 1,473 points to 1,500 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

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