Weekly Technical Analysis Report of Singapore STI and Malaysia KLCI

Weekly Technical view on STI

This was the week in which only green candle was formed by STI as there was not a major change in the trading range of STI it opened at 3071 and made a high of 3101 where gave the closing at the same level as it was for the last week candle @3073.

Long Legged Doji was formed by this week candle. As it has long upper & lower shadow with Doji as the shorter trading range in the middle

Weekly wrap of STI:

STRAIT TIMES WEEKLY WRAP
OPEN	3071.87
HIGH	3101.86
LOW	3053.59
CLOSE	3073.39
CHANGE (In Points)	0.33
% CHANGE	0.010

Macroeconomic factors:

• A good jump in the Trade Confidence Index as it’s the highest in two years at 115 i.e. 10 points. Announced by the HSBC
• Home price inflation in China slowed in Feb also as it’s the continuous second month where average for new home price rose 8.7% for the 70 major cities in China. If calculated for MOM basis price rose 0.3% for Feb.
• Statement issued by the Finance Ministry of Singapore on Tuesday said (SMEs) small medium enterprises will receive almost Q3 of sum disbursed, which calculated over 74000 employers will be receiving around S$800 Million by wage credit scheme, pay outs by March 31.
• SGX is about to revise the fee structure which will be applicable from 2nd May 2014 as to make the trading more cost effective the clearing fee would be reduced by one fifth from 0.04% to 0.325% of contract value.
• Economists forecasted 3.8% of Growth lower than expected as 3.9%

Market Forecast for week ahead:

• As the performance of the STI was in a very range bound for this week and closing for the week was as the same for the last week. STI formed the Long Legged Doji candle for this week.
• Studding Bollinger bands chart pattern it’s very clear that the market is in a very range bound conditions as its not able to maintain itself above 3100 and closed at 3073.
• Technically STI can fall for multiple support and it would be possible by the global economic factor & market sentiment to sustain above the mark of 3100.

Technical Indicators:

MACD is moving below the base and performing flat where RSI is at 44.51 CCI is also going down and is @ -52

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
3040	3000	2955	3130	3170	3210

Weekly wrap of KLCI:

KLCI closed Positive this week as it makes the green candle for this week after the red weekly candle.

Bullish Engulfing Pattern formed in this week, as Green candle formed for this week was followed by the red candle of the last week where the open & close for this week was formed in the range of the last week candle.

Weekly Technical view on KLCI

KLCI WEEKLY WRAP
OPEN	1806.15
HIGH	1821.88
LOW	1802.88
CLOSE	1820.48
CHANGE (In Points)	15.36
% CHANGE	0.850

Market Forecast for week ahead:

• 

  KLCI took the up move for this week after the two continuous down trend for two weeks 
• The 50 days EMA’ is trading at 1778 where 20 days EMA is at 1814.
• For the coming week the KLCI can take a upside movement but on the envelope channel indicator it seems consolidate in the range of 1790 to 1835

Technical Indicators:

The RSI is moving exactly above the base line at 53.92 else CCI is performing at -21

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1805	1795	1780	1835	1850	1870