Thursday 20 June 2013

Don't buy Singapore REIT drop now - too early for bottom fishing , wait for technical rebound signal

I remind the risk of capital outflow and inflated Asia asset in my previous blog. I recommended to sell in May. And I sought some of my stock before crash. In my latest post. I suggested to wait for confirmation indicator before buying. 
 
Singapore Stock is affected by US Federal reserve Chairman's QE tapering announcement. Which is an external factor.

Hong Kong Hang Seng index are commonly used as Asia stock indicator (Asia outside Japan).

From my technical analysis.

1st bullish indicator when HSI break through 20815 (stochastic 15 days) 
2nd bullish indicator when HSI break through 22579 (moving average 5 days cross over 10 days)

HSI today is around 20300. 1st indicator 20815 looks ok but it is too far away from 2nd indicator 22579. 
We should wait till HSI above 1st indicator and close to 2nd indicator.

Don't buy now.

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