Saturday, June 2, 2018

SINGAPORE STOCKS MARKETS IS NOW OVERSOLD, WHAT’S NEXT?


STI ETF, Singapore Stocks
Dear readers, the Singapore Stocks Markets is now Oversold from the recent selling sessions. For the month of May 2018, though the common saying “Sell (stocks) in May and Go Away” is not that evident till the bout of selling coming to the close of May 2018, the STI is down 5% just for the month of May. The Singapore Stocks Markets is Oversold technically since the STI ETF (ticker symbol: ES3) which tracks the Singapore Stocks Market’s STI is now Oversold. The last time when the STI ETF was oversold in Apr, the STI ETF was at $3.35, thereafter, the Singapore stocks markets rebounded, pushing the STI higher back again and the STI ETF reached a peak of $3.63 in early May 2018, representing a more than 8% increase. This time round, with the STI Oversold, will investors see a rebounding of the STI again back like the rebound from the lows reached in Apr 2018?


I would advise investors to wait a little more before clarity. There is currently a geo-political factor that of the Italian elections and that factor could play out for a little bit more till the conclusion of the Italian elections. The current showing of the Singapore Stocks Markets may be akin to a “falling knife” and we should not “catch” such a “falling knife”. For now, the STI ETF is already below the 100-Days-Moving-Average and this means to say the 100-Days-Moving-Average as a support has been breached. This picture of Singapore stocks is not good and let us see whether the STI ETF will breach below the 200-Days-Moving-Average next which is currently at $3.42.

Singapore stocks have really a run since last year and hence any stocks markets corrections should be viewed as an opportunity to bargain hunt good stocks but the important thing for investors is entering at an opportune time Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.


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