STI Singapore Market Forecast For The Week 07-11 Jan 2013

Sup 1	Sup 2	Sup 3	Res 1	Res 2	Res 3
3200	3160	3140	3260	3280	3315

Macro economic factors:

• The Singapore economy grew at a modest pace of 1.1% on a year-on-year basis in the fourth quarter of 2012. On a quarter-on-quarter seasonally-adjusted annualized basis, the economy grew by 1.8%, an upturn from the contraction of 6.3% in the preceding quarter.

• Singapore Purchasing Managers index (PMI) dipped to 48.6 points last month from 48.8 points in November, hurt by further declines in the sub-indexes for new orders and new export orders, the Singapore Institute of Purchasing & Materials Management (SIPMM). 

Market Forecast for week ahead:

• STI currently traded above the 3200 mark, and looking more bullish above this level. STI made a high of 3131 mark and having a Resistance @ 3135 level.

• STI trading above the 61.8% retracement level also the 3200 psychological resistance level so above this STI looks further bullish on charts. On the downside, 3140 is still the immediate support, with the subsequent base pegged at the 3110 key resistance-turned-support.

• For the coming week STI look volatile, because it is trading above the last 2 years higher level of 3200 ,so can face some pressure to maintain above this level and if hold itself above this than we can see the 3300 mark soon.

STI Resistance:

• STI having Resistance @ 3260 and above this level it may take resistance from 3285-3315 levels.

STI Support:

• STI having nearest support @ 3200 below this 3160-3140 will be the support area for market.

Technical Indicators:

Technical indicators give the impression of being in overbought zone.MACD gives bullish cross over and RSI move above its centreline area @ 68.45.