The STI index had finally broken the 2300 barrier last Thursday or Friday after the end of the market rally which kept the index at a luke warm 2200 plus range. Investors have been cashing out under the doubt of sustainable growth of the economy.
SGX listed STI ETF had its prices drop below the 20 day moving average during the last 2 weeks, levelling out the upward sloping trend. Now that prices have passed the average once more, we will expect to see a slow and gradual increase in index as the market starts to build momentum over the coming week.
An optimistic prediction would see the ETF hitting at least $2.50 by end July, with direction of future movement heavily dependent on market sentiment. Judging from the performances between a portfolio of mid cap stocks and a one with small caps, it seems that the former is building up momentum more quickly than the latter.
With no major setback, the new support level should rest around the late 2200s.
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