STI slightly shaken amidst turbulence in the global markets

Besides battling the delta variant, we are starting to see some of the aftermaths of the impacts caused by the pandemic. Some businesses that are heavily leveraged are starting to struggle to pay off their interests. Likewise, much of the optimism led by the vaccine and reopening of economies is also dampened by the delta variant which seems to be way more transmissible. In the near time, I would expect markets to start pricing in the risk if the delta variant goes out of hand either in the major economies or domestically. However, if there are new announcements about a better vaccine or medicine to treat the sickness, then we will likely see a spike upwards again. Until then, it is best to lay low and stay vigilant when markets overreact. As I would think that those situations will present the best opportunities to buy or sell.

STI – Updated Daily Chart

Looking at the daily chart, the STI is hovering around the gap upwards since March 2021. While I do not expect an immediate downside in the near term, I would not be surprised if the market tests the support level in the coming week. Therefore, we should be prepared to make arrangements to buy back if some counters fell way more than the market as a while due to some shocking news.

STI – Updated Weekly Chart

On the weekly chart, STI is now facing resistance from the 200 weeks moving average and that can be explained by the rise of the new variants that seem to render the vaccine less effective compared to the previous variants. As such, I would expect to see the market continue to trend at this level until there is sufficient reason to believe that there is a solution for the delta variant.

Author’s Call as of 18th September 2021

• Delta variant in addition to the laxed measures are putting more stress on investors especially in the already hard hit sectors
• Daily chart continues to show resilience however might test the support levels if there are bad news in the coming week
• Weekly chart shows that the STI is trending below 200 weeks MA and that will likely persist until the situaton changes
• Would recommend switching to a more opportunitic mindset so that we can get bargains or take profits when the market overreacts

Author’s Call as of 11th September 2021

• Infection numbers are on the rise but if the situation stays manageable then STI will continue its ascend
• Daily chart continues to consolidate sideways as investors are unsure of the developments of the spread in the next few weeks
• Monthly Chart exposes that there is no panic in the market yet probably cause of the reassurance given by the MTF
• Stay cautious when buying and accumulating but otherwise the market remains conducive for longer term investments
• Expect short term volatility and taking profit might still be a good idea for some tranches of your investments