Straits Times Index - Singapore Market Outlook 12 June

Market Reviews:
Singapore shares fell to their lowest level this year, largely in line with regional markets, on worries about China's slowing economic growth and continued uncertainty over the U.S. bond-buying programme.

STI opens gap down @ 3199 levels and it is also a highest level of day, after opening STI trading in a down side and took support @ 3159.52 levels and finally closed @ 3170.380 with loss of 30.130 down by 0.94%. Some 2.67 billion shares, valued at S$1.66 billion were traded. Losers outnumbered gainers 410 to 85.

Market forecast:

Straits Times Index dropped as much as 1.3 % to 3,159.52 points today, the lowest since Dec. 24 last year. STI continuously fall from its recent high and sheds almost 300 points from that level.

Today STI crossed its 3160 mark and made low of 3159 only ,below 3150 mark next support will come @ 3110 mark only and below this level STI will be more bearish.

Today STI formed a long black candlestick called “Falling window “a gap or called window between the low of the 1^st candle and high of the 2^nd candle. Falling window is a bearish formation. It defines a resistance zone. If future candles do not close in the resistance zone especially above the critical resistance line then this bearish effect remains valid.

Support:

STI having immediate support @ 3150 level and below this level it can take support @ 3110-3085 will be the support zone for STI.

Resistance:

STI having immediate Resistance @ 3210 and above this level it may take resistance @ 3240-3280 levels.

Technical indicators:

Technical indicators MACD is bearish, its 14-day RSI closed below 30 trading @ 22.002, and level indicating shares are oversold. And CCI recovers some points and trading @-129.003.

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
3150	3110	3085	3210	3240	3380