During the week of 3 August 2020, the Straits Times Index (STI) closed at 2,545.51 points. How will it fare for the week of 11 August?
Do take note that it will be a four-day trading week due to 10th of August being a public holiday, since National Day falls on a Sunday. Therefore, there will not be a mid-week STI analysis article next week.
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| Picture: Daily chart of STI, via TradingView. |
The bulls met some obstacles
The bulls gapped up twice on Tuesday, Wednesday and Thursday (4, 5 and 6 August) after it managed to stop the selldown at its 2nd support region.
On Friday, it met the bears at halfway towards the 1st resistance region after the climb. The bears attempted to pull the STI down back to its 2nd support region.
Nevertheless, the upward movement proves that the bulls had won during the week of 3 August.
The bears were not that strong too
The bear's appearance at midway also exposed its strength, which was not that strong.
STI closed as a red hammer candlestick on Friday, which shows that the bears sent the STI down during the early part of the trading day but the bulls took over and pushed it up slightly. The tall lower shadow shows some signs of bullish strength.
What can happen to STI next week?
With that, it is possible for the bulls to recharge its batteries and attempt to push the STI once again, towards its 1st resistance region early next week.
As re-iterated in my previous STI analysis article for the week of 3 August, it may or may not touch its 1st resistance region.
Coronavirus situation in Singapore
Singapore's coronavirus situation of about 55,000 cases are largely due to cases from the dormitories instead of the community like you and me.
It was mentioned by the Singapore's multi-ministry task force that Singapore's coronavirus cases is expected to drop significantly as the migrant workers' testing is about to be completed very soon. This may provide some respite to the STI moving forward.
Happy 55th National Day to Singapore!
