8:56 PM
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Market Reviews:
With other Asian markets STI also fell on 1st trading day of this week, before policy meetings of the US and European central banks.
STI opens lower @ 3233.69 and then made a day low @ 3218.58 and took support at this level, after taking support it recovers and made day high 3237.93. Finally closed @ 3236.97 with gain of 0.87 points, up by 0.03%.
Some 1.76 billion shares, valued at S$911.4 million were traded. Gainers numbered 152 while losers numbered 282.
Market forecast:
STI fell below its up slopping channel and closed just at breakout point, also took support just near to 3220 level and closed in positive node.
STI forming candlestick pattern called Hammer, candlestick formation is a significant bullish reversal candlestick pattern that mainly occurs at the bottom of downtrends. The Hammer formation is created when the open, high, and close are roughly the same price. Also, there is a long lower shadow, twice the length as the real body.
When the high and the close are the same, a bullish Hammer candlestick is formed and it is considered a stronger formation because the bulls were able to reject the bears completely plus the bulls were able to push price even more past the opening price.
As we can see on daily chart STI formed a pattern which replicate like rising wedge and as per the pattern if STI maintain above its up sloping resistance line i.e. 3270 mark then we can see more upside move in the Index, and for other side if STI breached its up sloping support line @ 3230 mark then next support will come @ 3180 level and after that we can see bearish move in market.
Support:
STI having immediate support @ 3210 level and below this level it can take support @3195-3180 will be the support zone for STI.
Resistance:
STI having immediate Resistance @3250 and above this level it may take resistance @ 3265-3280 levels.
Technical indicators:
Technical indicators MACD turn to bearish , its 14-day RSI is in recovering mode and closed @ 54.04 and CCI recovers again and trading @ 43.04
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