STI Singapore Stock Market Forecast 18 July

Market Review: 

Most Southeast Asian stock markets ended firmer on Wednesday as investors waited for clarity on when the U.S. central bank will roll back its $85-billion-a-month bond buying program. Federal Reserve Chairman Ben Bernanke, who gives testimony to Congress later in the day, is expected to balance a message of enduring central bank support for the U.S. economy with a reminder that the Fed's ultra-easy policies cannot last forever. 

STI opens @ 3221.12 and made day high @ 3226.38, and after making day high it continue fell down whole day and made day low @ 3207.54. Finally STI closed @ 3208.33 with loss of 16.63 points down by 0.52%.

SINGAPORE'S non-oil domestic exports (NODX) last month fell 8.8 % from a year ago, extending the 4.6 % drop in May. Month-on-month; the NODX rose a seasonally-adjusted 3.2 % in June to reverse the previous month's 1.1 % dip, according to Singapore's trade promotion agency International Enterprise Singapore on Wednesday.

Market forecast:

It is a 4th consecutive day of down trend in STI, index opens higher but closed lower. Good thing that Index maintains itself above 3200 mark.

As we mention in our previous report that STI formed an inverted pennant, and if it will maintain above its horizontal resistance line then it can be more bullish. And STI crossed that resistance line and maintain till 3250 mark but above this STI struggling and return back from that level.

So if STI crossed its 3200 mark then we can see more down side move in the Index, for upward move it has to maintain above 3250 mark.

Support:

STI having immediate support @ 3200 level and below this level it can take support @3185-3160 will be the support zone for STI.

Resistance:

STI having immediate Resistance @3255 and above this level it may take resistance @ 3285-3310 levels.

Technical indicators:

Technical indicators MACD turn to bearish , its 14-day RSI is in recovering mode and closed @ 54.39 and CCI recovers again and trading @ 110.64