Ernest’s STI market outlook (5 Sep 16)

Dear all,

I am not able to do the biweekly “Ernest’s market outlook” as I am in the midst of transiting to another chart platform.

While I am still exploring Chartnexus, here is my interpretation of our STI chart.

STI

Based on Chart 1 below, STI faces a cluster of resistances at 2,865 – 2,870, followed by 2,882. ADX remains weak at 17 on 5 Sep 2016, indicative of a lack of trend. Indicators such as OBV, MFI continue to slide with price. RSI closed at 50.5 today. A sustained break below 2,800 is bearish for the chart.

Near term supports: 2,840 / 2,820 / 2,800 – 2,810

Near term resistances: 2,865 – 2870 / 2,882 / 2,902

Chart 1: STI is not out of the woods despite Mon’s 1.7% surge

Source: Chartnexus as of 5 Sep 16

Conclusion

My personal view is that we have to be generally cautious in Sep. Nevertheless, I may do some opportunistic trades in some stocks with potential near term catalysts on weakness. (My clients have, will & are informed on new stocks which I have entered and any significant portfolio change.) Please refer to the following articles for more information on my market outlook:

1. Caution ahead? Most market strategists think so… (26 Aug 2016) (Click HERE)

2. Ernest’s market outlook (19 Aug 16) (Click HERE)

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