In one of the previous posts, I have turned my attention as to the way forward for Singapore stocks. I commented that Singapore stocks are likely to head south with the preliminary indication of Singapore Stocks heading south through technical moving averages cross-over. Specifically, back then, I was looking at whether the 5-days moving average of the Straits Times Index ETF will move below the 200-days moving average of the ETF.
As of yesterday, the 5-days moving average of the Straits Times Index ETF indeed went below the 20-days moving average of the Straits Times Index ETF! And what was significant was that the aforementioned downward crossing was followed by a large thick bearish stock candlestick as the STI ETF went south by 1.1%!
The above move, in my humble opinion would signal the start of the 5-days moving average moving below the 20-days moving average even though the STI ETF may continue to consolidate at the current level for some time first. I believe the downtrend of Singapore stocks had commences with the crossing of the aforementioned moving averages of the STI ETF yesterday.
The current macro environment, already volatile with the vagaries of different geo-political developments had been made even more complex with the proposed interest rate cut. All these point to a bearish confirmation and it is a matter of time when investors turn sellers and the momentum of downward selling of Singapore stocks commence.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! 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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