Secures USD696mn FPSO conversion contract
Singapore’s STI made its biggest drop in a single week for the year as prices slid 5% last week.
Last Friday, prices gapped down and broke below the rising wedge support and this breakdown could signal that the LT trend may be changing.
We would not be surprised if we see a multi-month correction for the rest of 2015
. The next downside target is at the 2,932-2,953 range
. A drop below this level would send prices to retest the 2,698 low.
The weekly momentum indicators have also slipped into the negative territory, which supports our bearish view.
Therefore, more weakness is likely in the next couple of months as long as prices stay below 3,384.
We advise the investors and traders to sell on strength
. For those with a higher risk appetite, short selling in the equity and futures market is one of the ways to hedge against the upcoming volatile environment. (Read Report)
Source : CIMB Research
Labels: Technical Analysis