Right timing: Correction deepens, main uptrend intact

Early last month, the STI broke out of a thrice tested resistance area at 3,265-3,270. This level should act as support and is likely to be tested in the week of Aug 14-18.
Previously, negative divergences had formed between the 21-day RSI and the index. RSI is now at a support level at 49. This may not hold.
A breakdown could imply a deeper correction by the STI in which event the 100-day moving average is likely to be tested. Quarterly ROC is falling but remains above its equilibrium line.
A break below equilibrium would indicate weakness.

STI Index (weekly)
Both annual and two year momentum remain in rising trends with two year momentum staying resilient.

Although the STI appears to be shaken and it is up some 19% over a 12 month period, this correction may not result in a top formation yet.

DBS Group Holdings ($20.80) – support appears initially at $20
Prices fell below the 50-day moving average at $21 on Aug 11.
At the same time, 21-day RSI appears poised to break below a support at its equilibrium line following a series of negative divergences between it and price.

In addition, the DIs could turn negative from their current neutral stance. These indicators are pointing to a further consolidation/correction for this counter.
Support appears initially at the 100-day moving average line at $20.28, and subsequently at the “roundophilic” level of $20. At these levels, the main uptrend would still be intact as a top formation has not quite formed. The 200-day moving average is currently at $18.88.
Short-term stochastics is at the low end of its range but could stay at this level for a few sessions before it turns up. By then, the 50-day moving average, which would be above $21, is likely to provide resistance.