Dear readers, yesterday the Straits Times Index closed at 2,960.98 down by 1.90%. I am not surprised at all at this showing since in the many posts that I have shared last month, I have said that a short-term immediate support for the Singapore Straits Times Index would be in the range of 2,800 to 2,900.
The Singapore Straits Times Index (STI) closed 3,222.83 on the last trading day of Year 2019. If we assume the current stocks markets to head further south such that the Singapore stocks markets will correct 20% year-to-date, the STI will have to reach 2,578 or around 2,600. This could be a possibility since the Covid-19 episode is still ongoing.
My personal thinking is that the Straits Times Index would consolidate around 2,800 level first before going down to 2,600.
For investors who are thinking of buying Singapore stocks on the cheap, be prepared not to catch a “falling knife”.
On the other hand, for those investors who have been waiting for a long time with their war chest, they would not mind waiting for the bottom to be formed.
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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