SINGAPORE (Aug 18): Here are some charts for our analysis:
STI daily (3,209)
As the Straits Times Index approaches 3,191 the decline could abate. Quarterly momentum is in a downtrend, but is now retesting a low it made in early Aug.
Short term stochastics is still falling and has not quite reached its oversold low range. The 21-day RSI is falling but it too has not reached is oversold line. In the meantime, ADX has just turned up and DIs are negatively placed. All these indicators suggest that prices could fall further first before rebounding.
In the short term, support appears at 3,191 from where a temporary rebound could materialise. Resistance would appear at 3,290. A break below 3,191 reconfirms the downtrend and indicates a target of 3,060.
STI weekly
The weekly chart shows declining annual momentum and a downturn by two-year momentum, which indicate that the market is in a downtrend, and which has yet to run its course.
