SINGAPORE (Oct 19): Here are two charts for our technical analysis this week
Straits Times Index (3,062.51)
Although the Straits Times Index remains below its moving averages, short term indicators may have found a floor. Short term stochastics is at the low end of its range, and 21-day RSI has rebounded off its oversold line.
In the meantime, the STI has stopped falling, and is attempting to establish support at 3,030.
Quarterly momentum too has found support and could rebound towards its equilibrium line. This could enabe the index to recover, albeit tenuously. Resistance appears at the earier breakdown level at 3,109.
On the flip side, ADX is rising and the DIs remain negatively placed. Annual momentum continues to fall, an indication that the STI’s downtrend has yet to run its course.
Venture Corp ($16.27) stabilises
Prices appear to have found support at the $15.90-16.00 range. Quarterly momentum is hanging on to its own moving average by a hair’s breadth.
Short term stochastics and 21-day RSI may turn up from oversold levels, and this could prevent a beakdown. A sharp recovery is unlikely, and at best, prices could stay within a narrow range, with resistance appearing at $16.90.
