Straits Times Index (Week of 28 September 2020)

During the week of 21 September 2020, Straits Times Index (STI) closed at 2,472.28 points. How will it fare for the week of 28 Sep? 

Daily chart of STI, via TradingView.

The bears overturned its losses

The bulls struggled to support the STI while fluctuating inside the key 2nd support region and the bears made full use of advantage to break below it. 

On Monday and Tuesday, STI dived below its 2nd support since April.

Evidently, the bears had won during the week of 21 Sep.

It may be a false breakthrough?

As previously mentioned, I was expecting a breakthrough after a period of stagnation in STI. The bears did made a breakthrough with a breakdown in STI but could this be a false break? 

The last three days, especially on Wednesday and Friday, showed a considerably strong green candlesticks - pointing to a bullish presence. 

If this is really a breakthrough on the downside, the drop should be as strong as what happened in August which created a lower low. Furthermore, the bulls should not pick back up so soon. 

What can happen to STI next week? 

These indications are pointing to a possible pullback to retest the broken 2nd support region which is now a resistance.

No doubt, it is still a wait-and-see approach as neither sides are decisive and strong enough yet to take charge of the STI's overall movement. 

Straits Times Index (Week of 21 September 2020)

During the week of 14 September 2020, the Straits Times Index (STI) closed at 2,497.71 points. How will it fare for the week of 21 September? Let's take a look. 

Daily chart of STI, via TradingView.

The bulls forced its way

Despite the price hovering below the 2nd support region, the bulls managed to get the STI back inside it last Wednesday. Over the next two days, the STI stayed supported on the region. 

Evidently, the bulls had won for the week of 14 September - a slight bullish victory still. 

The bears were not strong after all 

The week of 14 September shows further bearish weakness after a failure of pulling the STI towards the 3rd support region. As mentioned, this is a continuation of a long standstill for close to two months. 

What can happen to the STI next week? 

In my previous article, the stagnancy is looking to end soon with a breakthrough on either side. Judging from the price action, the bulls have a slightly advantageous position to launch a breakout towards its 1st resistance. Of course, this is provided that its own 2nd support region is intact to prevent the bears from getting its way. 

A cautious approach would be to continue stay on the sideline and wait first. 

Straits Times Index (Week of 14 September 2020)

During the week of 7 September 2020, the Straits Times Index (STI) ended at 2,490.09 points. How will it fare for the week of 14 September? 

Picture 1: Daily chart of STI, via TradingView.

The bulls tried, but were too weak

In my previous STI analysis, I mentioned that the bulls might look for a short bullish attempt which I am not so optimistic on its strength towards the 1st resistance.

However, as soon as the bulls tried to get itself above the 2nd support region, the bears came in and pulled the STI down again and again. 

STI breached below the 2nd support region 

The STI continued to slope downwards, eventually breaching below the 2nd support region on Wednesday. 

Wednesday, Thursday and Friday's lows have breached its lower low of 2,478.39 points. The bears had definitely won during the week of 7 September.

An imminent breakthrough!

Picture 2: Imminent breakthrough in the daily chart of STI, via TradingView.

There has been a period of push and pull battle between the bulls and the bears. Even though the bears did won by causing the STI to slop down gradually, a stagnancy in overall is still being seen here. 

However, another breakthrough is approaching. This will stop the stagnancy and get STI to either shoot up or break down. This is why I did not make any comment on what can happen to STI next week - it is best to stay clear and wait for confirmation first.  

It is coming.

Straits Times Index (Week of 7 September 2020)

During the week of 31 August 2020, Straits Times Index (STI) closed at 2,509.64 points. How will it fare for the week of 7 September? 

Picture: Daily chart of STI, via TradingView.

Tug-of-war between bulls and bears 

In my previous STI analysis article (31 August), I mentioned that the bears might make an attempt to break the 2nd support region.

The bulls and bears were fighting off each other with no major movement seen in the chart. 

Bearish breakdown as breakthrough

This lasted until Friday, when STI gapped down by opening at the low-end of the 2nd support region. Unsurprising, the bears had won during the week of 31 August. 

However, Friday's candlestick showed slight bullish movement attempting to make a rebound from the 2nd support region. This was likely due to a temporary oversold condition after a sharp fall between Thursday close and Friday's opening. 

In the end, STI is still being supported at the region. As mentioned before, this support region is very strong with its proven capability to prevent it from breaking down since April.

What can happen to STI next week? 

With that, I am still going to be emphasising the importance of the 2nd support region - for any potential price action coming out from there.

The bulls may look to make a short bullish attempt early next week, which I am not that optimistic about based on how bearish the STI has been since June.

Should the 2nd support region breaks, we should see more bearish movement towards the 3rd support region.