Buying momentum still weak for STI!

On 26/May, Singapore shares end higher Wednesday as investors are hunting for bargains based on the motivation that the market seems to find its support in near term especially after a late-session recovery on Wall Street yesterday. 

STI ended 45.41 points (1.7%) higher at 2696.02 with higher VOL of 1.66 billion shares traded compared with 1.61 billion shares Tuesday. In the broader market, gainers outnumbered losers 383 to 128.  Although today rally is not really in board based but the increase in volume shows the enthusiasm of the bargains hunters buying up the “cheap” stocks. 

Headline in STI

Before market close

Singapore's manufacturing output increased 51% in April from a year ago to its fastest pace in 26 years. These results unexpectedly beat the forecast of 19% improvement by seven economists.

Important Resistance of STI: 2700

Immediate Support of STI: 2650

MY sentiment on STI: Today STI broke through the critical support of 2665 to close higher at 2696 (1.7%).

However the white candle sticks with long upper shadow has indicate that profit taking is still in place and investors are not willing buy above the major resistance of 2700.

RSI out of oversold region but buying momentum still weak

We would suggest waiting for STI to break above the major resistance of 2700 before entering the market since the strength of buying is still relatively weak. But the support at 2650 seems strong in short term.