After the recent high-seller down, both Singapore and Malaysia have seen a positive rebound. Now, I believe that the markets are at an important crossroads.
After tonight’s FOMC rate decision congregation, I believe that most markets, including the Singapore and Malaysia stock markets, should take their cues from the United States market. According to me, most people expect a cut of fifty basis points. If that happens, then we could see a short-term boost in global markets.
The Singapore Straits Times Index hovers just below the 61.8 percent Fibonacci Retracement Level of approximately 3500 Points since the sell down from the Intraday high of 3688 points on 16 July to that of 2962 on 17 August. If the 50 basis point cut did occur, STI could be able to retest both the 3561 intraday high and the subsequently stronger resistance at the 3669.
Here are some top warning signs to look out for.
A). Candlestick: – The Doji formed on September 14th is a signal that there may be a reversal signal.
B). MACD Histogram – Forming lower highs than STI higher highs warns of potential weakening momentum.
C). Stochastic :- Despite STI hitting very high highs, this cautions about the possibility of weakening momentum.
According to the KLCI technical indicators
The Bollinger band is shrinking: – This tells us that the KLCI could soon experience a sharp rise or fall. It could be that it depends on US lor.
Parabolic SAAR:- The gap between the KLCI’s revolving positive and parabolic SAR has been closing. Only one division is left before the turning negative.
Fibonacci retracement:- The KLCI has been hovering at 61.8 percent Fibonacci retracement since rebounding from its day session low of 1141 points on 17 August. The KLCI is slightly weaker than STI, as it failed to maintain above 1290 points. The KLCI’s current high of 1305points is close to its long-term resistance.
Everyone’s eyes are on the Feds tonight. But what if they let the market down by lowering the rate by 25 basis points? Then the markets might look for another round of correction.
We will continue to see volatility in the near term, regardless of the trading. Trades should be fluid.
3 Basic Singapore Stock Market Investing Rules
You must be familiar with the fundamental rules of trading to become a good trader. The SGX investing rules may seem simple but it is crucial that you follow the rules and regulations. Although traders and investors are familiar with the fundamental rules of investing in stock markets, they often don’t know how best to use them. This article will explain the basics of stock market investing and show you how to implement them.
Investors must adhere to a strategy. This is the first and most important rule. However, when it comes to stock trading, you cannot stick with one strategy. Your plan or strategy should be flexible and adaptable to each situation.
A second rule that all traders and investors should be aware of is that they must have a target in mind before investing in the SGX markets. You should decide quickly if the stock you choose reaches your target.
Third, it is not necessary that you always achieve what you envision. You may have to accept loss due to the fluctuating SGX markets. You should conduct stock market research and forecasting in this case. Stock is a risky investment. If you are certain that you will lose more than you earn, you should exit the stock market as soon as possible. However, if forecasting, SGX Intraday Wins Picks, and research show that the market will stabilize in the future, then you should continue.