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