STI Singapore Stock Market Outlook For 02-May

Market Reviews:
Singapore shares rose to their highest in more than 5 years on Tuesday, tracking U.S. stock market which closed at a record high in the previous session. The Straits Times Index rose 0.6 % to 3,382.93, the highest since January 2008.

Some 2.11 billion shares, valued at S$2.01 billion were traded. Losers outnumbered gainers 269 to 210.Singapore shares ended higher on Tuesday with the Straits Times Index gaining 6.26 points to 3,368.18.

Bank lending in Singapore rose 1.5 % in March from February, Loans and advances by domestic banking units in the city-state amounted to S$517.8 billion (US$419.7 billion) last month, up from S$510 billion in February. From a year earlier, March bank lending rose 19.7%.

Overall unemployment rate, seasonally adjusted, edged up to 1.9 % in March 2013, from 1.8 % in December 2012.Over the same period, the unemployment rate for residents rose to 2.9 % from 2.7 %, while the citizen unemployment rate was unchanged at 2.9 %.

Market forecast:

STI crossed its 78.65% retracement level of 3379.08 but closed with loss after 5 straight upward trading sessions.

After taking a big leap of almost 60 points STI faced resistance at 3380 mark and can't able to sustain this level longer and closed lower @ 3368.18.

As we explain in our previous report that STI crossed its resistance level which is also breakout point of “Ascending Triangle”. So according to this pattern more upward trend is expected.

Support:

STI having immediate support @ 3350 level and below this level it can take support @3335-3320 will be the support zone for STI.

Resistance:

STI having immediate Resistance @3380 and above this level it may take resistance @ 3400-3412 levels.

Technical indicators:

Technical indicators MACD, RSI are in recovery mode and CCI currently traded @ + 229.58 level.

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
3350	3335	3320	3380	3400	3412