STI Singapore Stock Market Weekly Outlook 16-20 Sept 2013

Weekly wrap of STI:

Singapore shares edged up, on course for their 2nd week of gains after 4 in the red, outperforming most southeast Asian markets, lingering near a 3-week high level hit in the previous session, underpinned by gains in stocks with exposure to China as the world's second-largest economy appears to have dodged a sharp slowdown.

Week starts with gap up opening in STI 3072.35 and then it did see back just made low of 3071.32 and take a speed to cross 3150 levels and soon made week high @ 3136.53, fails to cross next level and finally closed @3120.30 with gain of 71.95 up by 2.31% wow basis.

Market Forecast for week ahead:

• In the previous week STI took support @ 2990 level and recovers some points, with this recovery it made a small triangle pattern on daily chart, and this week STI traded well above this chart pattern.
  
  
• STI closed above its 3100 mark, it made high of 3136, cant able to cross above this and traded in narrow range from past 3 days, so further uptrend it’s very important for STI to cross its recent high.

• As previous week STI formed bullish Harami and traded higher side as this pattern indicates. This week STI formed a candlestick pattern called a Belt Hold Pattern The opening price, which becomes the low for the day, is significantly lower than the closing price. This results in a long white candlestick with a short upper shadow and no lower shadow. 
  
  Here we can consider belt hold a reverse in investor sentiment from bearish to bullish. Since this trend occurs frequently but is often incorrect in predicting future share prices, it is rarely perceived to be useful. As with any other candlestick charting patterns, more than just two days of trading should be considered when making predictions about trends.

STI Resistance:

• STI having Resistance @ 3150 and above this level it may take resistance from 3180-3220 levels.

STI Support:

• STI having nearest support @ 3090 below this 3060-3030 will be the support area for market.

Technical Indicators:

Technical indicators are giving positive impression.