Market Review:
STI shares fell on the 4th continuous day, and closed well below the 50 & 200 day MA levels after minutes of the US Federal Reserve's October meeting indicated possible stimulus withdrawal at one of its next few meetings
Singapore shares open with gap down @ 3175.70 and then just made day high @3176.76 and then it traded lower side and made day low @ 3158.40 and then it recovers and closed @3172.38 with loss of 11.85 points down by 0.37%
Some 1.44 billion shares, valued at S$948.3 million were traded. Gainers numbered 136 while losers numbered 271.
Singapore raised its full-year growth forecast for 2013 to between 3.5 and 4.0 % after third-quarter GDP grew 5.7 % from a year ago, helped by further signs of a recovery in manufacturing and continued strength in services.
Market forecast:
STI closed below its 50 & 200 day MA level and also closed with recovery.
STI
formed a candlestick pattern called “Hammer” A hammer is a type
of bullish reversal candlestick pattern, made up of just one candle, The
candle looks like a hammer, as it has a long lower wick and a short
body at the top of the candlestick with little or no upper wick. here
the hammer form in a downtrend this is a sign of a potential reversal in
the market as the long lower wick represents a period of trading where
the sellers were initially in control but the buyers were able to
reverse that control and drive prices back up to close near the high for
the day, thus the short body at the top of the candle.After seeing this chart pattern form in the market most traders will wait for the next period to open higher than the close of the previous period to confirm that the buyers are actually in control.
Two additional things that traders will look for to place more significance on the pattern are a long lower wick and an increase in volume for the time period that formed the hammer.
Support:
STI having immediate support @ 3155 level and below this level it can take support @3135-3115 will be the support zone for STI.
Resistance:
STI having immediate Resistance @3195 and above this level it may take resistance @ 3215-3235
Technical indicators:
Technical indicators MACD, RSI and CCI are turning from lower.
Technical view on STI
| Support 1 |
3155
|
| Support 2 |
3135
|
| Support 3 |
3115
|
| Resistance 1 |
3195
|
| Resistance 2 |
3215
|
| Resistance 3 |
3235
|
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