SINGAPORE (Dec 1): Here are some charts for our technical analysis this week:
Straits Times Index (daily)
Although the STI (3,449) closed at a new 10-year high on Dec 1, the chart pattern still looks corrective. ADX is falling, as the DIs remain positively placed. This occurs during corrective phases. Short term stochastics is approaching the high end of its range and could turn down. Meanwhile, medium term indicators are intact. Quarterly momentum and the moving averages continue to rise. The long-term annual and 24-month momentum are also intact.
A continuation chart pattern could be developing, and this would suggest that the STI may move within a range for some time. The lower boundary has been established at 3,341 and the upper boundary at 3,449. Since this is likely to be a continuation pattern, the breakout should be on the upside, with a successful break indicating an upside of 3,600.
Venture Corp ($20.52) support at hand
Prices have more than doubled this year, and the counter could be heading for a period of rest and recuperation. Support has been established at $20.40. Quarterly momentum, which has turned down, could continue to fall.
Stochastics and 21-day RSI are also falling, as is ADX. These indicators are pointing to a consolidation phase that has yet to run its course. During this period, the uptrend should remain in intact. The rising 50-day moving average is at $19.44. Resistance/ breakout appears at $22.08.
