As pre-emoted recently, the STI wiped out 5 sessions of gains in just 1 session yesterday. And this happened before the US and global markets moved down strongly due to “second wave” of COVID-19 in the USA. This, in my humble opinion, is actually the extension tail of the initial wave as there was no break.
Coming back to the STI, there should be a follow through, with a slight bounce, but should end much lower. Meeting the 55EMA in the gap support zone should offer some supporting bounce, only to fail later in the month. MACD is turning down, but not yet firmed, although the trailstop is already broken for a downtrend.
Worthy to note, the green dotted line was the target for the past rally to break above for a trend change. Unfortunately, it did not manage despite a valiant effort. This suggests that the (down)trend resumes to be in force.
Coming back to the STI, there should be a follow through, with a slight bounce, but should end much lower. Meeting the 55EMA in the gap support zone should offer some supporting bounce, only to fail later in the month. MACD is turning down, but not yet firmed, although the trailstop is already broken for a downtrend.
Worthy to note, the green dotted line was the target for the past rally to break above for a trend change. Unfortunately, it did not manage despite a valiant effort. This suggests that the (down)trend resumes to be in force.
