Dear readers, in an earlier post (you can read this post here ) this month, I shared with readers that the upside for Singapore stocks is limited. Following my post, the larger trend of the STI is south and yesterday, the STI closed at 3,392.51 down 1.11%. Based on the STI ETF, an ETF which tracks the STI, the STI ETF at $3.446 was just a few pips away from $3.435 which is the 200-Days-Moving-Average for the STI ETF. Typically, when a stock price goes below the 200-Days-Moving-Average, the possibility of a longer-term downtrend is higher. Looking at the past performance of STI ETF, the STI ETF went below the 200-Days-Moving-Average on 4 Apr 2018 for a while before it rebounded. Will investors see a rebound of the STI ETF next if it touches the 200-Days-Moving-Average again? For me, I think the STI along with STI ETF would continue to go south until the support at 3,339 for the STI, that means another 1.6% to go south. If this support is breached beyond, I think a longer downtrend for the STI would set in. 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.
