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| Picture 1: Daily chart of STI, via TradingView. |
The bears stomped on the gas pedal
In my two previous STI analysis articles (Week of 20 & 27 July), it was mentioned that there is a possible major bearish breakdown towards the 2nd support region.
On last Thursday, the bears accelerated the breakdown and successfully sent the bulls back home, pulling the STI down to its 2nd support region. Apparently, the bears had won during the week of 27 July 2020.
STI touched its 2nd support region
A new low of 2,511.02 points was formed on Thursday, touching its 2nd support region. If you look at the left side of picture 1, you can see this region supporting the price successfully for FOUR times before the bulls dominated and drove the price up in June. This was why the bulls managed to support the price at its 2nd support region and even closed above it to end off the week.
Evidently, this shows some presence of bullish strength coming back into play.
What can happen to STI next week?
With that, I am expecting the bulls to make an attempt by pushing the STI back to its previous 1st support region (now called 1st resistance region) early next week. It may or may not touch that region so I believe it is best to adopt a wait-and-see approach.
The 2nd support region is now a key area to look out for any potential price action currently.
Is the price breakdown done?
After STI stalled in its 2nd support region, we may be led to think that the price breakdown effect from the symmetrical triangle has finished playing out. However, I don't think it is done yet. There could be more bearishness later on which has the potential to reach its 3rd support region.
Special STI analysis edition via Facebook live and mid-week STI analysis!
Very soon, I will be setting up and going into Facebook live to analyse on the STI every week in addition to my weekly STI analysis articles. Not to worry, they will sing the same tune.
I will not go Facebook live to say that STI is going down and afterwards, publish an article saying that STI is going up.
This Facebook live is a platform for me to practice stepping out of my comfort zone and to elaborate my viewpoints using my mouth right before I publish my article. This would mean that viewers can choose to watch my video on Facebook and/or read my STI analysis article in blog.
There will also be a mid-week STI analysis edition which I will be providing updates on the STI current movement every Wednesday in my blog page. This will be a shorter article instead.
So, stay tune for more updates!
