Fund Flow

Straits Times Index Index (STI) Chart Analysis

did a charting on both Straits Time Index (STI) and Hang Seng Index (HSI) where i found some similarities, both STI and HSI are trading in a price channel.  

Both Straits Times Index (STI) and Hong Kong Index are coin or term as Emerging Economies quoted by the Economist ''The Economist claim to rank economies rationally by income per head: Hong Kong and Singapore (still listed by us as emerging economies) both have a higher income per head than Italy. Taiwan and South Korea have also now, more or less, caught up with Portugal and Greece, which (in the full set of tables on our website) we count as developed economies. Our sorting is largely driven by convenience: it seems awkward to split Hong Kong and Singapore from China and Malaysia." 

The characteristics of Straits Times Index is exceptional.  

Quoted by one of the best Technical Analysis expert Donovan Ang "STI is the best indicator to the performance of worldwide stocks and equities markets. It is also the most honest market in the world, without much requirement for technical investors and traders to even second guess."  

In one of the seminar which i had attended in the past, quoted by Asian investment guru Hu Liyang  "STI is an honest and orderly market."

After China is absorbed into the MSCI Emerging Market Index, there could be an influx of foreign institutional funds flowing into China, this could be positively buoy sentiments across global financial markets, spillover effects into Hang Seng (HSI) and Straits Times Index (STI), both HSI and STI share similar chart patterns that could see them break new high and creating all time high depending on the smart monies fund flow analysis who are currently bullish and yet bearish  on the global financial markets.  

Base on Technical Analysis (TA): 

It is observe that HSI and STI are trading in price channel displays by red color line with a target of HSI 35000 and STI 4000 and above. 

Additional points to supplement the observations using STI ETF chart where it is observed a huge and large ascending triangle chart pattern displays with yellow color line.  

A rising wedge chart pattern display by green line and yellow line suggest resistance around 3400 to 3600 level will probably see some correction to resume 4000 targets

STI ETF revise
STI Index
Hang Seng Index

Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.

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