Since late March, we have seen a recovery after a massive sell down in the Singapore stock market. The STI ended at 2,634.83 points on 19 June 2020. How will it fare for the week of 22 June?
Picture 1: STI daily chart via TradingView
Bearishness spotted
If you look at the chart, STI had made a high of 2,839.39 points on 9 June 2020 (Labelled "High") before throwing back to the previous low of 2,606.15 points.
Unfortunately, it was reciprocated by a lower high (Labelled "Lower high") last week which shows that the bullish strength was far from being able to push the STI back to contest against its previous high. Between the bears and the bulls, the bears had surely won for the week of 15 June.
1st key support is key
With that, I am expecting STI to fall further towards the 1st support region next week (it has yet to touch the highlighted region). Should STI pierced below the 1st region, there may be further bearishness towards the 2nd support region.
Coronavirus... again?
The Circuit Breaker enforced on 6 April 2020 was a trigger for a huge decline in Singapore's economy. Although phase 2 had started yesterday, it needed to happen in my opinion as many non-essential businesses are starting to face going concern issues after being out for more than two months.
As if things aren't bad enough, there are currently fears of a possible second wave of coronavirus. Should that really happen, what can happen to STI?
