Small Deal better than no deal
Trump has little room for negotiation given his own deadline on 15 Dec. Chances are that if he start the new tariffs, he might spoil the end of year festival spirit 2 years in a row. That would probably cause more Americans to turn their heads during the 2020 elections. The reason why it showed that Trump was forced to say yes was being there was not a concrete deal from China’s side.
There will be some room for the coming weeks until December as STI has been depressed despite US markets continued climb in the past weeks.
Daily Chart for the week ahead
STI tested 3220 last Friday but it failed to pass it due to the trade tariff and phase one deal uncertainty. Since the phase one deal have stopped tariff and reduce some existing tariffs, investors confidence should return in the coming week. Chances are that STI will test 3250.
STI – Updated Weekly Chart
Using the weekly chart, STI will test downtrend resistance at 3290 in the coming weeks. This is actually highly possible unless there are further issues with US and China. STI will continue to climb led by Banks who still have plenty of room before hitting major resistance.
Author Call
- STI Rallying towards 3250 then 3290
- Will likely pass 3220 in the coming week
- Phase one deal will boost investors trust
- Good time to buy shares which are depressed due to trade tensions
Author Call (As of 8 Dec)
- STI rallying towards 3220 then 3285 (Updated from 3280)
- Support at 3190 held for week (1-6 Dec)
- Festive period will call for more optimism in the market
- HK mellowed after Police permitted their protest
