Triple Bottom Formation Signals Bullish trend

US indices dipped and STI opened with a gap down. This led to significant price movements on Friday morning, but during the day investors started to react defensively and pushed the STI back above 2500 points and closed at 2509. No doubt there wasn’t a massive volume traded to show strong rejection of the breaking of 2500 support levels, we can expect STI to be supported by 2500 levels in the interim. However, if US corrections continue (as of Friday closing the US closed slightly lower albeit much higher), we should expect more weakness ahead and rely on the weekly chart instead.

STI – Updated Daily Chart

STI closed above 2500 support levels formed in April 2020. At the moment, STI should be one of the more realistic indexes in the global economy. Our sideways consolidation is justified by the weakened global economy in addition to the pandemic....