Chart 1: STI with moving averages and momentum
Moving averages are useful as support and resistance levels. Quarterly momentum retreated temporarily, but its trend remains upwards. Since prices appear to have found support at 3,192, they are attempting to rebound off this level. However, immediate moves remain corrective.
Chart 2: Short term indicators
Short term indicators show the index is likely to continue to corrective mode for a few more sessions. Short term stochastics continues to fall, as does the 21-day RSI. ADX is falling, and the DIs appear poised for a negative cross.
Quarterly momentum remains intact, suggesting that the STI should rebound soon. The index peaked temporarily at 3,285, before retreating. This level is likely to provide resistance as prices rebound.
