STI was unable to break through the resistance of 3036 for the 3rd time and Stochastic level at such a high level. On top of these , with DOW dropping 80+ points at this point of time , there is a high chance that STI will be forming triple top and falls in the short term . On hindsight , there seems to be some mixed signal , whereby it is forming 2 uptrend support , as shown in the blue line and black line. If the blue uptrend line support does hold, there is a high chance that a breakout of 3036 on the 4th try in the mid term. If the ascending triangle formation fails , the following support will be 2949[horizontal support],2889[horizontal /100ma support] , MA200 line support and finally uptrend black line.
Strategy:
I will wait STI to stochastic to drop to a more neutral zone and around uptrend blue line support, which is forming the ascending triangle.
Counters to target:
STI/MSCI stocks: Kepland, Noble group,SGX ,SMRT
Growth Stocks: Otto marine, Midas , PEC, Ezra,Guthrie
Counters to avoid:
Property Stocks -->Bad sentiment due to Singapore government cooling measures.Kepland might be exception due to it's play in marina bay centre and office rent are rising.
Telcoms Stocks --> Currently rumours that possible 4th 3g providers will be penetrating into the market.
Starhub will be the one i will pick up if it dropped to a reasonable price, due to next gen broadband + dividend payout. However , there are risk of starhub of not able to keep up the dividend pay out.
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