What should prevent a sharper decline are stochastics and directional movement. Stochastics has turned up from the bottom of its range. ADX continues to fall and the DIs remain neutral, preventing a strong decline.
Among the STI’s component stocks, several are moving either sideways or lower. Singapore Telecommunications is meandering sideways but could weaken. Developers and REITs are likely to ease. The banks could hold their own for the time being. Elsewhere, rotational interested may keep selected tech stocks in the limelight.
As a case in point, CapitaLand Integrated Commercial Trust was unable to meet its potential and has since eased and, at $2.14, has dipped below its 50-day moving average which is currently at $2.16. Since quarterly momentum has broken below an uptrend and its own moving average, prices are likely to ease further, towards the $2.00 to $2.05 range before they are able to stage a recovery. In the immediate term, $2.16 is the resistance level. The high of 2021 was $2.34.
