STI just reached interim downside target. May bounce...

As posted on numerous occasions recently, the STI, as expected and accurately enough, broke down and ended the week at the interim downside target.

This breakdown did not appear to have very strong momentum, although it appears to be technically committed. Hence, expect next week to be slightly bullish, perhaps to retest the resistance.

So far, taking stock of the technical outlook, the STI broke down and out of the widening wedge, broke down and failed a retest of the 55EMA (orange line).
It just has a bearish bias, just not one of a waterfall like earlier in the year, so we can
Robably expect a bounce or range consolidation to follow until the next breakdown...

Stay safe, know how to read, and read when it is clear.
Am happy to exchange notes if anyone sees another perspective. Looking forward to comments...

Comment:

The bounce was small, and the downside that ended the week was stronger than most of the week. Singapore is on a Public Holiday on Friday, 31 July, hence the week was shorter, but ended with downside momentum.
The already obvious weakness was exacerbated by SIA earnings report and the regulatory restriction for banks to limit their 2020 dividend yield to 60% that of 2019. So the index heavy weights were dragged down, with the index to breakIng a support level and ending at another lower support for the week.