Analysis on STI
Without delaying, let us look at the chart of the STI. On 20 July 2018, the STI closed at 3,297.83 points. Before that, it was beaten down from a high of 3,641.65 on 2 May 2018 to a low of 3,176.26 on 6 July 2018. STI managed to find a support at 3,200 level (the lower blue-coloured area) and rebound to break and retest the next support at 3,220 level (the higher blue-coloured area).
With that, STI has taken off from the 3,200 level after testing and should be looking to head over to the next resistance at the 3,340- 3,360 region (green-coloured area) when the market reopens on 23 July 2018.
Signs of Accumulation
There were signs of accumulation as three points of accumulation had been observed by me. They are marked in circles and what it seems like is an inverted head and shoulders classical pattern. The pattern was successful as price managed to break out of the blue trendline drawn on the chart.
