Wondering how to invest in Singapore stocks next? When the stocks markets have just recently corrected last week as what I have shared about Singapore stocks previously?
As a matter of fact, the Singapore Stocks are currently Oversold. I like to use the Straits Times Index (“STI”) ETF (ES3.SI) to track the sentiment of the STI and the Singapore stocks markets. And from what I am looking from the STI ETF chart right now, things are not rosy.
First, the STI ETF is Oversold
Second, not only is the STI ETF Oversold, the STI ETF is right below its 200-Days-Moving Average and 300-Days-Moving Average. A stock price below the 200-Days-Moving Average is bearish and really means that a longer downtrend could be in place. The STI ETF has in the year-to-date broken below the 200-Days-Moving Average in Mar 2019, Jun 2019 too. And while in the previous two occasions, the STI ETF managed to rebound back after breaking below the 200-Days-Moving Average, the manner that the 200-Days-Moving Average was broken this time round (by a very bearish stock candlestick on 5 Aug 2019) was really different, And it could confirm a longer downtrend for Singapore stocks next.
Third, a support level of around $3.165 for the STI ETF. If the STI ETF breaks below $3.165 level (the support), a longer downtrend of Singapore stocks is inevident.
Finally, on how to invest in Singapore stocks next? My own humble opinion is that with plenty of vagaries on the macro front, it is best to stay away from investing in equities now but at the same time, it means really sitting down and understanding what is happening along the macro economical front now.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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