North Korea’s Nuclear testing shakes the market.
Straits Times Index started the month of September bearishly. This bearish action was triggered by North Korea’s nuclear testing. Fear of war heighten as the tension rises; creating a wave of market participants exiting the market. On Monday, the market reacted immediately on the bearish side. STI was brought to as low as 3227 level before it attempted to rebound the next day. Rebound attempts during the week were unfruitful as it failed to sustain beyond 3245 level. Bearish pressure was undeniable firm but strong selling pressure was not present. Eventually, STI closed the week at 3228.56 level with 48.7pts down for the week.
North Korea’s nuclear testing had indeed stirred the market last week. Denouncements were reported throughout the world. War concerns are real but how will it affect the market?
Let’s analyse the chart.
Trend: Uptrend formation, 20 wma …