As most experienced investors should know, the market basically acts on its own with or without a compelling reason. This time, the correction is triggered by the news of a new variant which is supposedly way more contagious than the delta variant. As a result, we saw almost all counters retreat with aviation and tourism stock prices falling significantly. As countries continue to open up VTLs, such a news must have come in handy for sellers to sell therefore, it might have been an overreaction. In this week’s market outlook, we will focus on the movements of the index to spot the next support level that we might be able to rely on for the coming week.

STI – Updated Daily Chart

Zoomed in view of STI daily chart

The STI daily chart dropped below the 3200 psychological barrier before mid day and continue to fall below the resistance turned support level on Friday.