Singapore's main stock indicator, Straits Times Times, has fallen for three consecutive months, thus forming what is known as a three black crow candlestick pattern. This hints at further declines and that once again a major band of resistance between 3,350 and 3,500 points has capped. Moves down are likely to be halting as there are a series of support levels, starting at 3,250, then 3,200 and 3,100. Further out, a drop to last year's low at 2,950 cannot be ruled out. Bearish pressure should increase if we now hold below 3,380, while a monthly close above here would force us to review. Be careful because holiday-thin summer conditions might lead to sudden price swings.
