Strongerhead views on Singapore outlook for the week 6 May

This is another one off demonstration on how Strongerhead set up can be used to analysis the Singapore market.

Let’s take a look at the big picture. STI weekly is UP, but a massive MACD divergence spotted.

STI Daily is in its overbought zone, with prices sitting at the top of its channel. If STI does not break below its short term support (3323), prices should go higher. Last Friday rally should keep prices above it support when market opens next Monday.

Let’s take a look at two financial stocks’ outlook for next week.

OCBC Weekly is still UP, in tune with STI. However, OCBC has already pulled back from its high.

OCBC daily sitting on short term support, with prices in a neutral zone (either overbought or oversold). If it breaks below that support, that’s a possible false upside breakout. The massive MACHD divergence support this analysis for now.

Technically, OCBC is looking bearish. Of course, if STI continue its rally, OCBC might just follow suit and move higher.

UOB has broken to a new high. But on its weekly chart, it is quite over bought. BUT MACDH suggested the power of bulls is strong at present moment.

UOB daily showed an overbought situation as well. For a false upside breakout, prices will have to break below $18.80.

Technically, UOB is looking more bullish in the longer term provided it does not break below $20.80, but short term pull back might be possible to cool off its overbought condition. With EX-Div in place increase UOB chances for a pullback next week.

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NOTE: All information provided “as is” for informational purposes only, not intended for trading purposes or advice.