Stock Selection (SG): SGX at risk of shaping further downside

SGX at risk of shaping a further downleg towards major range support.

Singapore Exchange/SGX (S68)

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Key technical elements

  • The share price of SGX has staged a bearish reaction right at the long-term secular descending range resistance from Oct 2010 high; a decline of 10% to print a low of 7.22 on 13 Mar 2018 where it has damaged the medium-term uptrend in place since 30 Oct 2018 low.
  • Medium-term momentum reading remains negative as indicated by the daily RSI oscillator where it continues to inch downwards below the 50 level and still shows room for further potential downside before it reaches an extreme oversold level at 20.
  • The key medium-term resistance stands at 7.52 which is defined by the pull-back of the former medium-term ascending support from 30 Oct 2018 low, close to the upper range of the bearish “Pennant” configuration and 38.2% Fibonacci retracement of the recent decline from 05 Mar 2019 high to 13 Mar 2018 low.
  • The significant support rests at 6.72 which is defined by the major range support from Jan 2016 low and a Fibonacci expansion cluster.
  • The ratio of SGX /FTSE STI is still advocating underperformance of SGX versus the benchmark FTSE STI index.

Key Levels (1 to 3 weeks)

Pivot (key resistance): 7.52

Supports: 7.02 & 6.72

Next resistance: 8.00


If the 7.52 key medium-term pivotal resistance is not surpassed, the share price of SGX may see a further decline to target 7.02 before the major range support at 6.72.

However, a clearance with a daily close above 7.52 see a squeeze up to retest the long-term secular descending range from Oct 2010 high now acting as a resistance at 8.00.

Charts are from eSignal

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