Resistance turned support line at 2812

STI experienced a few days of profit-taking from a peak of 25 November 2020. Since then, the market has been undecided but has been hovering around 2812. During the week, we did notice several attempts to break below 2800 even however buyers always fought back and held the line. At the week’s closing, STI still closed on the red partially because of the further delays in the SG-HK travel bubble. In today’s post, we will analyze the present situation based on technical analysis to see how we should react in either case of a dip or spike in the index.

Basically the market is on a uptrend but individual counters are never performing uniformly. Therefore try to view each of the constituent in your watchlist objectively as some weakened counters will still remain weak in the near term unless that particular company has updates to their businesses.