During the week of 11 August 2020, the Straits Times Index (STI) closed at 2,581.32 points. How will it fare for the week of 17 August?
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| Picture: Daily chart of STI, via TradingView. |
The bulls recharged and climbed
In my previous STI analysis article for the week of 11 August, I mentioned that it is possible for the bulls to recharge itself and push the STI up towards the 1st resistance region. Also, I mentioned in both articles for the weeks of 3 & 11 August that it may or may not touch the region.
Indeed, the bulls had succeeded in touching the 1st resistance region after pushing the STI up from the halfway point (between 2nd support and 1st resistance region).
Evidently, the bulls had won for the week of 11 August.
Presence of bears were spotted, but looks weak
On Friday (14 August), STI opened lower and ended the week with a red doji. This happened after the bulls managed to touch the 1st resistance region It is a clear sign that some bears had resurfaced at the resistance region and stalled the bullish movement.
However, these bodies of red candlesticks since the rebound from 2nd support region were small despite their tall shadows - showing that these stalls might be temporary.
What can happen to STI next week?
With that, I am expecting to see some possible resistance by the bears first, followed by another possible bullish movement. This will be an attempt to pierce through the 1st resistance region.
Therefore, 1st resistance region is going to be an important region to look out for any price movement on either side.
Coronavirus situation
The number of coronavirus cases in Singapore had indeed went down substantially as mentioned by the Singapore Ministry taskforce. On 17 August, there will be a ministerial statement on how the government would provide additional support for workers and businesses. This might bring in further alleviation to the STI for the time being.
However, coronavirus cases around the world had surpassed 20 million last week.
