7 August 2020


The STI did get support from the zone shown by the blue band. However the small increments in the last few days and today’s sell-off show market weakness. It is probable that the STI will test the support band again and will drop below it. There is some weak support at 2380, but the worsening US sanctions on Chinese companies will drastically harm market sentiment. There is now a possibility of the STI dropping to the bottom at 2208 reached on 23 March 2020.

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