Singapore Straits Times Index (STI) has Dark Cloud Cover issues!
Technically, this is a classic pullback all set up...
A strong rally to the upside based on vaccine elation
supported by financials and sectors for "going back to Normal"
followed by a Dark Cloud Cover candlestick pattern
that was confirmed with a Gap Down.
It is just above a range support, but breaking into the next Gap Down range (below the red line) would be very bearish.
MACD is showing a bearish cross down
Similarly the Relative Price Strength has crossed down
What this means is that to keep up with the bullish rally, there needs to be a much greater upward push...
which is less probable than the easier downside retracement.
Still, this downside may be quick, shallow and a set up for the bigger picture in 2021...
A strong rally to the upside based on vaccine elation
supported by financials and sectors for "going back to Normal"
followed by a Dark Cloud Cover candlestick pattern
that was confirmed with a Gap Down.
It is just above a range support, but breaking into the next Gap Down range (below the red line) would be very bearish.
MACD is showing a bearish cross down
Similarly the Relative Price Strength has crossed down
What this means is that to keep up with the bullish rally, there needs to be a much greater upward push...
which is less probable than the easier downside retracement.
Still, this downside may be quick, shallow and a set up for the bigger picture in 2021...
