Straits Times Index - Singapore Market Outlook 10 July 2013

Market Reviews:
Most Southeast Asian stock markets edged higher in light volume on Tuesday as investors sought bargains among battered emerging equities with sentiment buoyed by gains in Asia. Indonesian shares, however, fell after some early gains.

STI opens @ 3167.05 and goes down and made day low @ 3159.83 , after taking support that this point STI made day high @ 3185.59 and finally closed @ 3178.58 with gain of 23.16 up by 0.73%.Some 1.97 billion shares, valued at S$1.12 billion were traded. Gainers outnumbered losers 302 to 134.

Singapore shares outperformed, with the Straits Times Index up 0.9% at 3,183.61, the highest in more than 2 weeks.

Market forecast:

STI traded in positive node and made day high near to last week’s high and faced resistance @ same level of 3185 and near that place.

STI formed a technical pattern called pennant, his pattern is usually a continuation pattern so in this case it would be bearish pennant. However since it’s forming right at our uptrend line, this could break on either side. And maybe just tiny bit higher chances that it could break upside since we are the uptrend line support.

We can see this pattern in reverse manner and if STI manage it self above 3190 than we can expect more upside.

Support:

STI having immediate support @ 3160 level and below this level it can take support @3140-3120 will be the support zone for STI.

Resistance:

STI having immediate Resistance @3190 and above this level it may take resistance @ 3205-3230 levels.

Technical indicators:

Technical indicators MACD turn to bearish , its 14-day RSI is in recovering mode and closed @ 48.78 and CCI recovers again and trading @ 67.43.

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
3160	3140	3120	3190	3205	3230