SINGAPORE (Oct 5): Here are two charts for our analysis this week.
STI daily (3,209)
The market’s short-term uptrend ran into resistance at the same time as quarterly momenum faced resistance at its equiibrium line. Both Straits Times Index and momentum have retreated. The STI attempted to rise above the resistance area at 3,257 and tested 3,267, above the 50-day moving average currenlty at 3,226.
Short-term indicators peak and turn down
Short-term stochastics is at the top end of its range and is beginning to turn down while 21-day RSI has turned down. ADX is falling, and the DIs appear poised for a negative cross. As these indicators weaken, the trend of annual momentum continues to be downwards. This indicator looks set to break below its equilibrium line.
Support has been estabished at the Sept 11 of 3,102, and resistance has now been established at 3,267.
