Dear readers, it is time once again to take a look at the Straits Times Index (STI) to determine which STI stocks are oversold and overbought. First, a look at the Straits Times Index for the week ended 16 Oct 2020. The STI seemed to turn bearish with that 1.3% drop on 15 Oct 2020. And this was not surprising since before the drop, I have shared with readers that the Straits Times Index was likely to correct after reaching overbought level.
Now, let us take a look at the Overbought Straits Times Index (STI) stocks. These are stocks, each with a RSI of above 70 and these overbought STI stocks are:
DBS stock
Keppel Corporation stock
SATS stock
Sembcorp Industries stock
ST Engineering stock
Venture stock
Next, we turn to the Oversold Straits Times Index (STI) stocks. A scan for these led to no oversold STI stocks for the third consecutive week (including this week).
I am of the view that the Covid-19 reality (just look at the still increasing number of cases worldwide!) will soon catch up with the stocks markets. Stocks markets nowadays seem to me to be overvalued because of investors flocking to them due to the low interest rate environment. Also, the upcoming US elections may also introduce some elements of uncertainties to the stocks markets. Investors will be best-placed to stay on the sidelines for 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! 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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