SINGAPORE (Feb 24): Here is a chart for this week's technical analysis:
Straits Times Index (3,533, daily)
Even though the Straits Times Index rebounded and regained the 50- and 100-day moving averages, quarterly momentum has encountered resistance at its own declning moving average. Short-term stochastics has turned up from the low end of its range and has the potential to move higher. ADX continues to fall although DIs have turned neutral from a negative stance, lending weight to the rebound. That would suggest that prices could move towards 3,600.
On Feb 9, the STI fell to low of 3,340, holding above the 200-day moving average at 3,328 before rebounding. All in, the STI has had a reprieve from its broadening formation and has managed to regain the breakdown level of 3,400. Support has been established at 3,340 for the time being. The chart pattern suggests that the STI has moved into an overall sideways trend, breaking the momentum of the 2-year strong uptrend.
