With the uptrend losing momentum, it is time for consolidation
The STI has not been staging aggressive reactions in the past week simply because most of the good news and anticipation of a vaccine has been fairly priced in. At the moment, the 9 and 20 days MAs still have not crossed but there is not much progress from last week’s anticipation of the 9 MA crossing or bouncing. However, the monthly chart is starting to show some signs of good news as the MACD is signaling a trend reversal. Personally, I am going to assume that STI is in for a period of consolidation because we are sort of in the eye of the COVID storm as the rest of the world still struggles to recover from their new waves of infection and economic upheaval.
STI – Updated Daily Chart
Both 9 and 20 days MA didn’t bounce but also didn’t cross
Understandably, the daily chart is showing little activity when late comers rushing in to look