Straits Times Index (Week of 26 October 2020)

During the week of 19 October 2020, the Straits Times Index (STI) closed at 2,537.39 points. What will this week bring to the STI? 

P.S. Some delays in my weekly STI analysis due to personal matters during the weekends.

Picture 1: STI daily chart via TradingView.

The retest is still ongoing

This chart is based on last Friday's close (23 October). As what I had mentioned last week, the STI is currently retesting the 2nd support region.

The bulls succeeded in a weak way

While retesting the 2nd support region, the bulls managed to come up with a rebound on two occasions (16 & 19 October). However, the rebound was not strong - green candlestick bodies were tiny and there were taller upper shadows than its lower shadows. 

This was proven to be true as this was followed by last Tuesday and Wednesday's tall red candlesticks. 

The bulls succeeded the second time

On last Thursday and Friday, the STI made a rebound for the second time. Last Friday's close placed the bulls at an advantage as the bulls managed to push the STI up despite the its early decline.

What can happen to the STI this week? 

Although two rebounds were made, it still does not strongly prove that the bulls are in the lead. This is especially with the appearance of two tall red candlesticks last Tuesday and Wednesday. Furthermore, a lower high was formed which is not advantageous for the bulls. 

Therefore, my personal stand would remain as last week - a wait-and-see approach as the retest of the 2nd support region is still going on.

Straits Times Index (Week of 19 October 2020)

During the week of 12 October 2020, the Straits Times Index (STI) closed at 2,533.02 points. How will it fare for the week of 19 October 2020? 

P.S. Was late in posting a STI weekly analysis due to some priorities on weekends.

Picture 1: Daily chart of STI, via TradingView.

The bears retest the 2nd support region 

Note that this chart is still based on last Friday's closing (16 Oct). I highlighted last week that the bears may conduct a throwback towards the 2nd support region to test the demand.

Yes, it indeed happened on last Wednesday and Thursday. The STI started to decline at the midpoint between the 2nd support region and the 1st resistance region. 

A lower high was formed 

While declining from the midpoint, a lower high was formed at 2,570.19 points on last Tuesday. With lower high and lower low formed, STI is considered to be a downtrend.

What can happen to STI this week? 

Declining from the midpoint towards the 1st resistance would proved that there is a strong supply throwing down at this point in time. 

The throwback was done, with the bears pulling STI down. However, whether the region is able to withstand the supply side is still unknown. Since this is a retest of the 2nd support region, it would be safer to have a wait-and-see approach. 

The bears are at an advantage for now. 

Straits Times Index (Week of 12 October 2020)

During the week of 5 October 2020, the Straits Times Index closed at 2,532.96 points. How will it fare next week for the week of 12 October 2020? 

Picture: Daily chart of STI, via TradingView.

The bulls broke the broken 2nd support region

Last week, the bulls managed to make use of the consolidated falling wedge pattern to make a bullish move. It breached the old 2nd support region and stayed above there.

This breakthrough came after two advancements to pullback towards its broken 2nd support region for a retest.

Evidently, the bulls had won during the week of 5 October. 

Breakout is not strong

Yes, this bullish breakout is considered a breakthrough. I was expecting the breakout to be sharp but it turned out not as strong as it was supposed to like the bullish movements in April and June. 

Furthermore, last Friday was a full red marubozu candlestick. The bears throughout the entire session and it was pretty prominent. 

What can happen to the STI next week? 

With that, the bears may attempt to initiate a throwback towards the 2nd support region once again. This time, it may be to retest the demand side at the 2nd support region.

Should the demand be able to withstand the bearish throwback, the 1st resistance can be the next target moving forward. 

Therefore, this 2nd support region will still be a critical area to look out for any price action. 

Straits Times Index (Week of 5 October 2020)

STI closed at 2,496.11 points during the week of 28 September 2020. How will it fare next week for the week of 5 October 2020?

Picture: Daily chart of STI, via TradingView.

The bulls made a slight advancement 

The bulls made a pullback to retest the broken 2nd support region, as mentioned in my previous STI analysis article. 

However, STI failed to break the resistance with two red candlesticks on last Tuesday and Wednesday.

The bulls made a 2nd advancement

Without giving up, the bulls continued to be persistent by making a 2nd round of retesting towards the region. Based on Thursday and Friday's candlesticks, it shown signs of bullish strength. 

Friday's candlestick was a strong indication. The tall lower shadow would mean that during the session, the bears attempted to pull the STI down but was met with strong demand buying up.

Evidently, the bulls had won slightly for the week of 28 Sep. 

What can happen to STI next week? 

With the pullback touching the 2nd support region and closing on it, this region will be critical to watch out for any price movements. Should the STI be able to return towards above its 2nd support region, the bulls may stand a good chance to dominate the movement. 

This would be a long standstill as I am still looking for a breakthrough in STI on either side as mentioned before.