Singapore SGX : Weekly Technical View on STI July 28-Aug 01

Weekly wrap of STI:

The week started off bullish with STI at 3280.66 and ended bearish at 3344.42.Overall performance was bullish which raised index. At the last trading day Hong Kong stocks fell 0.66 per cent in the first few minutes of trade, after news of Argentina's debt default and a rise in US jobless claims caused a slump on Wall Street. Singapore share prices opened lower with STI down 28.83 points to 3,346.41.Remarkable growth is being observed in property sector stocks which took the STI up.

STRAIT TIMES WEEKLY WRAP
Open	3351.22
High	3387.84
Low	3339.78
Close	3344.42
Change(Points)	-5.75
% Change	-0.17%

 Market Forecast for week ahead:

STI formed a hammer pattern for the week which indicates a trend reversal .We may expect that the next week may be bearish as technical’s are also indicating the bear signal. The market sentiments are also negative due to the US data.

Technical Indicators:

RSI is at 66.93 and CCI is at 156.36 .Both the indicators are supportive for the bullish trend .MACD is at 4.045.

STI LEVELS
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
3300	3270	3250	3350	3365	3375

 Macroeconomic factors:

• Singapore’s bank lending registered flat growth in June compared to the previous month, dragged by a slip in business loans.
• Total employment growth in Singapore fell to 22,000 in the second quarter of 2014, down from 28,300 in the previous three months and 33,700 a year ago.
• Singapore's central bank announced new proposals to regulate financial benchmarks, in the wake of a series of scandals around the world involving traders manipulating Libor and other key rates.
• Singapore’s third-largest bank reported a 3.2 per cent rise in quarterly profit, beating market estimates. But the bank said a group of investors was struggling to service high-end property loans.
• Osim international, the massage chair maker, said it posted a 13.1% rise in 2qfy2014 ended June of $29.36 million from $26.1 million a year ago. Revenue rose 10.4% to $182.7 million.