Chart Source: poemsview 14th March 2020
What a week right? A rough week would probably be an understatement! Oil crashed, Dow crashed, Yield crash, limit down, limit up and there is still no sign of Covid-19 letting up.
But hold steady and lets have faith that we’ll get through this together. By now, we’re sure Covid-19 is no stranger to the world. Its been grabbing headlines for all the wrong reason and markets are plunging due to fear of how this virus will impact the economy. We’ll still continue to look at our charts to find some clues on when the selling might subside or when a technical rebound might come.
For our STI, we have drawn some support and resistance levels and will be using it as a guide to try to navigate through this crazy times. The first support we see is at around 2510 level, the low of 2016. It had some rebound from there on friday and a good rebound might see STI to close to 2700. We’ll take things step by step for now and after 2700 then 2750 area. The support for us is at 2510 then 2415. No one can tell when the market will bottom or where the top is therefore its important to have the right mentality when investing or trading.
Don’t fish for the bottom but plan your investment in batches.
Take care when trading and its always good to have an extra pair of eyes to look out for especially during this period.
Have you prepared your shopping list? Drop us a message and we can discuss more.