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.
