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