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.
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| 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.
