The STI continues its climb to test 3108.
Pivot 2920
Long positions above 2920 to test 3108 and 3270
Short positions below 2920 for 2871 and 2813
Looking at the monthly chart of the STI since 2007, the STI has been in a broad range between 2580 and 3898. A break of 3108 will test the 2 year downtrend cap on price since 2018. A break and hold above 3270 most optimistically tests the 2018 highs at 3646 (20 percent upside). A failure to break 3108 will likely test the 2020 lows at 2199 (30 percent downside risk).
An investor needs to consider the risk reward ratios when money is put at work. A range market poses considerable risk as there is no observable trend since 2007 to follow especially for those who look to build portfolios for the long term. Range markets favors the technical/swing traders and puts long term holders of stocks at risk.
Pivot 2920
Long positions above 2920 to test 3108 and 3270
Short positions below 2920 for 2871 and 2813
Looking at the monthly chart of the STI since 2007, the STI has been in a broad range between 2580 and 3898. A break of 3108 will test the 2 year downtrend cap on price since 2018. A break and hold above 3270 most optimistically tests the 2018 highs at 3646 (20 percent upside). A failure to break 3108 will likely test the 2020 lows at 2199 (30 percent downside risk).
An investor needs to consider the risk reward ratios when money is put at work. A range market poses considerable risk as there is no observable trend since 2007 to follow especially for those who look to build portfolios for the long term. Range markets favors the technical/swing traders and puts long term holders of stocks at risk.
Quant Strategic Singapore