SINGAPORE (June 15): Here is the daily benchmark Straits Times Index chart for our technical analysis this week:
STI daily (3,356)
The Straits Times Index fell 80 points during the past four trading sessions, breaking below the 200-day moving average at 3,431. The 50- and 100-day moving averages are poised to turn down at the 3,500 level. This is likely to act as resistance during rebounds.
Short-term indicators are oversold with short term stochastics at the bottom of the range. Any rebound is likely to face resistance at 3,500.
ADX has started to rise from a low level, and the DIs are negatively placed, confirming a possible downtrend. Quarterly momentum is forming a downtrend The weekly chart shows a gradual downturn by annual momentum, with its own weighted moving average turning down a well. This suggests that the main uptrend is probably over.
Immediate support appears at 3,338, the April low. A break below this level would indicate a downside measuring objective.
