Morning Highlights:

Market gap up at today’s open, attempting to trade higher. However, the climb did not sustain and the index starts to fall at 09:30.

 

The moving averages are converging on the STI’s daily chart. There is a high chance that once they converge, the moving averages will cross each other and the downtrend will continue.

 

Most of the blue chips had experienced a violent drop initially and likely that they will be traded in a tight range. We advise for traders to stay out of the market for the time being since the market might remain choppy and directionless.

 

More confirmations are needed to identify a clear trend. Nonetheless, we believe the market is downwards inclined. Hence, traders are to be nimble if they are taking long positions. 

 

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Afternoon Highlights:



The STI continues to fall in the afternoon session, from 14:00 to 15:30 and manage to hold the trades at that level. It was only until 16:30, STI starts to fall rapidly.









Zooming into the individual stocks, we have OCBC falling tremendously at 16:30 as well, touching its 14th May low of 6.57.

On a 15min chart, OCBC breached the support at 6.57, with a total volume of 100k traded at 16:35, with a total of 24 times traded.