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  • Straits Times Index

    3,293.13
    +20.41 (+0.62%)
     

  • S&P 500

    5,070.55
    +59.95 (+1.20%)
     

  • Dow

    38,503.69
    +263.71 (+0.69%)
     

  • Nasdaq

    15,696.64
    +245.33 (+1.59%)
     

  • Bitcoin USD

    66,348.12
    +49.24 (+0.07%)
     

  • CMC Crypto 200

    1,433.13
    +9.03 (+0.63%)
     

  • FTSE 100

    8,086.06
    +41.25 (+0.51%)
     

  • Gold

    2,328.90
    -13.20 (-0.56%)
     

  • Crude Oil

    82.87
    -0.49 (-0.59%)
     

  • 10-Yr Bond

    4.5980
    -0.0250 (-0.54%)
     

  • Nikkei

    38,460.08
    +907.92 (+2.42%)
     

  • Hang Seng

    17,201.27
    +372.34 (+2.21%)
     

  • FTSE Bursa Malaysia

    1,571.48
    +9.84 (+0.63%)
     

  • Jakarta Composite Index

    7,174.53
    +63.72 (+0.90%)
     

  • PSE Index

    6,572.75
    +65.95 (+1.01%)
     

STI Weekly Update (20 October-13)

Shares Investment

During the week, the Straits Times Index (STI) gained a mere six points with low trading volume and closed at 3,180. On a side note, the establishment of a higher low that was highlighted last week has been affirmed. This was posted on 12/10/13.

The STI is currently exhibiting an inverse head and shoulder formation as seen on the chart. A valid breakout will be at the 3,280 level with trading volume higher than the 50 Day average trading volume. The projected target of this breakout is at the 3,550 level, with a significant resistance at the 3,470 level, the established high of the year. The support for the failure of this breakout is at the 3,120 support level.

Currently, the 20 Day MA is crossing up, attempting to do a crossover against the 100 Day MA. Along with indicators such as MACD and GMMA, where both are also attempting a crossover to the bullish momentum, and there is a significant potential in the breakout of this bullish inverse head and shoulder formation, when the bullish sentiment of the market brings the buying volume back into the market.

On the weekly chart above, the inverse head and shoulder formation that was highlighted three weeks back is still in play. However, the Stochastic indicator has signalled a bearish crossover. This indicates a higher probability of more retracement for the indices in the coming week. An attempt to breakout of this chart formation may still not be ripe.

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