Morning Highlights:
Due to the overnight effect from Dow Jones, the market gapped down at the open at 2212.88
The main reason for the immense drop was due to the news impact by the World Bank for lowering its forecast for the global growth. In addition, to the falling crude prices that hit energy shares.
The market traded in tight range after the US sell-off.
Afternoon Highlights:
At 14:30, the STI manage to pull off and climb back to 2234.45, which is now a crucial support. It climbed further up to 2247.24 at 14:45. However, as of 16:15, this support appears not to be able to firm the drop as market has dropped down back to 2234.45 and created a low of 2232.77
Among the 3 banks, DBS is the weakest with only 2 times traded at 11.36 with a total volume of 16k. We believe that 11.36 served as a strong resistance for DBS.
Following next, we are observing Sembcrop Marine Ltd. SCMN has breached the resistance at 2.69, which the low is created on 16th June. It is now trading in a tight range below 2.69. We have position a short selling at 2.63, Stop Loss at 2.69 and Conservative Take Profit at 2.57. However, SCMN next low is 2.35 that were created on 18th May.
CapitaCommercial Trust (CACT) is near 0.77, 27th April’s low. We are waiting for setup to enter position.
Important Notes:
Market have to trade above 2247.24 before we can confirm for the day that 2234.45 is a support, else, base on the current market performance, STI is more likely to head down even lower.
