Straits Times Index (Week of 30 November 2020)

 Straits Times Index (STI) ended at 2,855.82 points last Friday.

Picture: Daily chart of STI via TradingView.

The bulls are in total control 

The STI faced a slight stall on 19 Nov at the 3rd resistance region last week, but resumed its bull charge and pierced through the resistance level. 

Since the certainty outcome of the US election and some news regarding coronavirus vaccine, the buyers gobbled up all the blue chip stocks and pushed the STI to break the 2nd support, 1st resistance, 2nd resistance and also 3rd resistance regions. 

Even with some slight profit-taking, the bulls are clearly dominating the STI. 

Technical adjustment was seen 

On last Wednesday, 25 Nov, the STI had a tall red candlestick for the first time since the huge rally. This came as a technical adjustment due to temporary excessive overbought situation - also a profit taking day. 

On Thursday and Friday, there were attempts by the bulls to possibly continue its way once again. 

What can happen to STI next week? 

With the 3rd resistance broken and no resistance in sight, the next bullish resistance would therefore, be the psychological 3,000 level. 

However, with the tall red candlestick, it may be an indication pointing to a correction back to the 3rd resistance region first. This is especially so after a long sharp rally. 

Straits Times Index (Week of 16 November 2020)

Pfizer's strong breakthrough with a 90% effective Coronavirus vaccine and Joe Biden's victory in the US election had propelled the Straits Times Index (STI) upward to close at 2,711.39 points last Friday. 

Will there be any more to come?

The bulls continued its streak 

Despite facing a bearish day on 6 November (last Friday) which happened below the 1st resistance, the bulls continued to push STI further. It broke through the 1st and even the 2nd resistance by having a powerful gap up between last Monday and Tuesday.

This was mainly due to the influence from the US as the global market favoured Joe Biden's victory to deal with the Coronavirus plus a possible end to Coronavirus in the future. 

A short hiccup seen slightly above 2nd resistance 

The week of 9 November was made up of five green candlesticks, proving that the bulls had indeed dominated and won. 

A slight hiccup was seen on Thursday and Friday as the STI actually opened below its previous close for two days. This is where some profit-taking can be seen in the chart.

This shows that the bulls had lost some strength for now. 

What can happen to STI next week? 

With that, I might see the bulls still attempting a final weak push towards the newly added 3rd resistance and it may or may not touch the level first. 

After climbing sharply over the past two weeks, there may be a slight bearish retracement coming soon. Such retracement would be temporary in my opinion. 

Straits Times Index (Week of 9 November 2020)

With Joe Biden winning the election and becoming the 46th US President, what might happen to the Straits Times Index (STI) for the week of 9 November?

Picture 1: STI daily chart via TradingView

The bears converted into bulls 

Last week, I mentioned that after reaching the 3rd support region, the STI may stage a rebound which can be short-lived. However, it was totally unexpected that this sharp fall had actually resulted in a sharp rise - even higher than the level prior to the fall. 

Evidently, the bulls won during the week of 2 November.

STI touches the 1st resistance 

With the bulls advancing strongly, it managed to pierce through the 2nd support region with strong gap up momentum. These were all in the midst of waiting for the election result to be released. 

It touches the 1st resistance region and last Friday's candlestick was a red one. This shows some selling pressure right there.

What can happen to the STI next week?

The election result was released yesterday, after the market closed for the week. These price movements were in waiting mode back then. 

Now that we know Joe Biden has defeated Donald Trump, this major news will create high turbulence in the market next week. Therefore, my take would be to stay on the sideline and have a wait-and-see approach first.

The STI can go either way, up or down - it can be extremely irrational next week. 

Straits Times Index (Week of 2 November 2020)

Alright, enough of the formality and let's straight dive into it.

Picture 1: STI daily chart via TradingView

Millions of bears crossed the road, not the chickens

The Straits Times Index (STI) closed at 2,423.84 points last Friday. A wait-and-see approach was recommended in my previous analysis.

Indeed, thsi wait was over as the bears emerged as the winner, dominating the STI in reds by breaking down the 2nd support region. The week of 26 October were all red candlesticks - the bears won apparently. 

The bearish strength was extremely strong especially during the last three days, forming a three black crow pattern. The price even gapped down during each day's opening from its previous close. 

STI reached the 3rd support region

The strong bearish momentum had broken the previously strong 2nd support region, which ended up resting on the 3rd support currently with no bottom in sight yet.

It had also broken its previous low.

What can happen to the STI next week? 

As STI touched its 3rd support region, I am expecting a possible temporary rebound by the bulls for a tiny pickup - but likely to be short-lived.

In overall, the bears are still in control especially with the price gapping down with solid red candlesticks. With that, we can expect a bearish continuation plus a possible breach in the 3rd support region in my opinion.

The US Presidential Election 2020

Since the US Presidential Election 2020 will be held on 3 November, the STI is very likely to experience high volatility during this week. 

This is especially so when the number of coronavirus cases exceeded 100,000 cases in a single day, tensions in America will definitely be high which might bring in potential civil unrest even after the election. 

You might want to avoid trading and stay cautious on the sideline.