The STI on the other hand was unable to hold on to its break above its 200-day moving average at 3,224 and fell sharply on June 10. This move is a sign of weakness, partly because it occurred at the end of a trading week, when the STI closed at 3,181, down 50 points week-on-week.
Since the 50- and 100-day moving averages have made a negative cross at 3,213 and 3,306 respectively, the STI may spend the week of June 13-17 floundering and possibly turning volatile.
Part of the reason for a technically challenging week, is because the STI’s quarterly momentum was not able to break above its own resistance at its equilibrium line. The STI has fallen below its immediate support at 3,221. The next immediate support is at current levels, at 3,180, and then at 3,165. A break below 3,165 indicates a minor downside so let’s hope it doesn’t get to that.
See also: Straits Times Index shows signs of decoupling from the US by outperforming
