Short term indicators are weak. Stochastics is falling after turning down from the top end of its range, and 21-day RSI is also in sharp retreat. Annual momentum has turned down, but it remains above its own 40-week moving average.
In general blue chips are likely to continue their correction/selloff for the first two days of the week starting Aug 5. DBS Group Holdings should find initial support at $25.20, while Oversea-Chinese Banking Corp is likely to meet with support at around $10.90-$11.00. Singapore Telecommunications has retained its strength against the broad market – but it’s best to keep an eye on $3.28, below which the immediate uptrend is broken
ComfortDelgro’s uptrend in danger
Prices are on an uptrend, and this is intact as prices stage a corrective move towards its 50- and 100-day moving averages at $2.66 and $2.61 range. Quarterly momentum appears poised to break below its support and equilibrium line. ADX is falling, although the DIs are negatively placed. Volume is low, suggesting that prices may not stage a sharp decline. But prices could still drift lower, towards $2.61 and possibly to $2.50.
