SIMSCI Chart Analysis

  • Taking a look at the Singapore Index, we can see that the past week has been extremely volatile, with the global markets falling by more than 5% in a single day on 11th June.

  • From a technical perspective, price has respected the 38.2% Fibonacci retracement level and broke past the 50% Fib level with strong downwards momentum on the 11th of June. However on the following day, price could not continue its bearish momentum to the next Fib level of 61.8% (green arrow), only forming a small bullish hammer at the close.

  • In the weeks to come, we can expect price to respect the 61.8% Fib level as well as the bottom trendline, acting as a strong support level. If price was to close below these levels, we can expect it to head towards the 78.6% Fib level.

  • If however, price opens or closes above the 61.8% Fib level, we can then expect it to move towards the top trendline (red arrow), before further consolidation around the 50% Fib level.

  • A breakout of the triangle is imminent, traders should be prepared for large volatility in the markets in the days ahead.

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