From a technical perspective, 2016 has been a pretty flat year for the Singapore Market. The STI started the year just below 2900 and looks set to finish the year around the same range. There have indeed been some volatile periods within the year with key market shock events such as the US President Elections and the Brexit as well as oil-related news, however from a trend perspective, the market has largely been unable to break through the key resistance of 3000 while there has been strong support above 2700. Moving into 2017, these 2 levels will give a signal whether the market can start a potential long term uptrend or downtrend.
Gems Still Found in 2016
Though the general market was flattish, there were still numerous stocks which have seen a nice uptrend in 2016, giving the trend trader opportunities to profit in this dull environment. Stocks such as Best World, Japfa, Sino Grandess, MM2 Asia, SingMedical just to name a few, have increased significantly in prices since the start of the year. While some of them have peaked and reverted back to their lows, there was definitely opportunities to take advantage of this during the year.
Looking Forward to 2017
We will not know how the general market will trend in 2017. All I know is that there will definitely be opportunities within individual stocks that traders can take advantage with while always protecting their downside. I will continue to post trade ideas which are in line with my trading style and philosophy as well as my P&L which will include my entries and my exits for stocks. Wishing everyone all the best in the upcoming trading year!