The Singapore Blue Chip Cash, which is similar to the MSCI Singapore Free Index and is strongly correlated with the Straits Times Index (STI) is currently trading at the 23.6% retracement level of 375.78.
I feel a move higher to the 38.2% retracement at 379.96 and into the 200-day moving average at 380.19 will present attractive levels for a modest short position. The move will coincide with the 14-day RSI indicator heading into the 50 mark, which has been untested in recent sessions.
To protect against a stronger up-move, stops could be placed at 390, just above the 61.8% retracement of the 15-April to 9-June sell off. Target profit areas at 360 -365 may provide a good risk-reward trade.