In my previous STI analysis article for the week of 6 July 2020, I was expecting the bears to make an attempt to pull the STI down to its 1st support after the bulls have touched the 1st resistance region.
Bulls continued its lead, until..
On Monday, the bulls continued its way in an attempt to pierce through the 1st resistance region. However, it was met with a heavy selldown on Tuesday despite opening higher and creating a new higher high at 2,707.67 points. This created a throwback to its 1st resistance region as a backtest of a possible new support.
Are the bears awaken?
The throwback seemed to depict a tug-of-war between the bulls and the bears, until the STI experienced a second selldown on Thursday. This time, STI broke down below its 1st resistance region. Despite being in a consolidation (price is now made up of a lower low and a higher high), the breakdown shows a sign of bearishness
What can we expect next week?
With that, I will continue to leave my expectation unchanged. It shall be the same as my previous STI analysis article for 6 July. The bears could dominate next week's trading session and bring the STI down towards its 1st support region.
The 1st support region shall continue to be an important area to look out for any price action.
Coronavirus situation in US and Singapore GE2020
The coronavirus cases in the US is still worsening as it exceeded 3 million cases. Meanwhile, Trump's decision to have US out of the World Health Organisation.
There are currently speculations of a possible 2nd Circuit Breaker in Singapore after the election. Should Singapore enters into another Circuit Breaker, things could get even disastrous as we can surely expect an accelerated surge in going concern issues around companies and businesses.
As of writing this STI analysis article, the GE2020 results has yet to be released and its possible that roosters will be able to wake up at 5am to view the ongoing process. Because the counting of votes has been delayed to 10pm later.
