Still waiting for Omicron variant reports
As the world wait nervously for the official reports for the Omicron variant, the global market remain volatility. What we have seen so far are markets pricing in the worst case scenario of the variant. It seems like although nations are stalling to understand how severe are the impacts of the virus variant, we noted that there are still leakages. This signals that the virus is more contagious compared to the delta variant and is also harder to detect. In this week’s market outlook, we will take a closer look at the STI’s market sentiment as an indication of whether we are more optimistic or pessimistic.
STI – Updated Daily Chart
If you notice the uptrend support and resistance line, STI just happens to exceed that estimated level by a small margin. Coincidentally, the index is also just above 3100 signifying that it is still a significant milestone in light of the new variant yet to be fully understood.
STI – Updated Monthly Chart
The STI continues to trend below the second arbitrary support/resistance line but so far the December candlestick continues to be a solid green candle.
Author’s Call as of 4th December 2021
- New Omicron variant threatens to destabilise the global market as countries reintroduce restrictions
- 3100 level continues to be the support level that we have to look at in the coming week
- The monthly chart continues to stay positive in the month of December for the time being
- The optimism last week might not last if there are newer developments for the variant in the coming week
Author’s Call as of 27th November 2021
- Depending on the developments of the new variant, we should be able to predict if there is further downside
- The daily chart show that the index is not entirely pessimistic at market close on Friday
- The support line at around 3120 appears to be the next defence before the index approaches the 50 and 200 weekly’s MA
- Investors should have started buying back during the dip for significant discounts especially from hard hit sectors otherwise, there might be opportunities ahead if the news from the virus become increasingly severe
