During the week of 24 August 2020, the Straits Times Index (STI) closed at 2,539.63 points. How will it fare for the week of 31 August?
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| Picture: Daily chart of STI, via TradingView. |
Gap was closed, but the bull's weakness prevails
Previously (STI analysis article for the week of 24 August), I mentioned that the bulls might make an attempt to close the gap formed between 19 and 20 August.
Indeed, the bulls managed to close the gap. However, if you look at the candlestick for 25 August, it had a tall upper shadow - meaning that the bull's further attempt towards the 1st resistance region after closing the gap was cut short.
The bears put up a strong fight after all
The last three days of the week of 24 august showed bearish movements, especially when the bull's attempt towards the 1st resistance region was cut short once again on last Friday.
In overall, the bulls won. But, it was a slight margin.
What can happen to STI next week?
Looking at the movement and the two tall shadows within a week, it seems that the bears are starting to gain strength.
With that, I will be expecting to see the bears attempting to break below the 2nd support region next week. Therefore, that region is going to be an important area for any price action.
I would also like to wish all Malaysians a Happy National Day!
