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?
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| 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!
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| 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.
