Morning Highlights:

 

The STI gapped down at today’s open but recovered very quickly, forming a triangle pattern. It appears to be more downward inclined.

 

The point at 2257.44 might be tested again today. Hence, adopt cautious trading if you wish to be in the game, especially if you identify an opportunity to long.

 

For those who have missed the entry price for OCBC yesterday (we held the stock overnight), refer to our Quick Picks for more opportunities.

 

Our Focus for today is on Financial Sector

 

Quick Picks: Here is a quick pick screen that we have designed to pick out potential stocks, both Bullish and Bearish. These are measured with emphasis on larger changes in price and volume.

 Bearish Stocks:

 

Symbol

Name

Entry

SL

TSL

TP

Remarks

1

OCBC

Oversea-Chinese Banking Corp

6.68

6.75

 

6.61

Next support at 6.57

2

YNLG

Yanlord Land Group Ltd

2.14

 

 

 

Waiting for setup

The index breached the resistance at 2257.44 at 11:30 (Singapore Time); the next level will be at 2234.45

*OCBC - Take Profit at 6.61 at 11:30

 

Afternoon Highlights:

The STI managed to climb back to 2257.44 after breaking through.

 

Once again, we advise everyone to be cautious when executing any trades for today. It would be good for traders to observe the last hour of trading. If the market fails to hold onto the point at 2257.44, high chance that it will continue to trend downwards.

 

Stand by at SGX, Keppel Corp and City Development for short selling. Traders can choose to short near the close. 

 

Bearish Stocks:

 

Symbol

Name

Entry

SL

TSL

TP

Remarks

1

SGX

Singapore Exchange Ltd

7.10

7.21

 

6.99

 

2

KPLM

Keppel Corp Ltd

6.63

6.69

 

6.57

 

3

CTDM

City Development Ltd

 

 

 

 

Very long red bar

 

In Summary,

Market close at 2239.90 today. We expect to see the STI to test the support at 2234.45 tomorrow.

On the 15min chart, the STI has broken through the support at 2261.61 at 15:45

During the last hour of trading, we can see heavy selling on most of the blue chips with main focus on SGX, the weakest of all and follow by City Development. Keppel Corp only reacted in the last 15 min towards closing at 6.65.