Annual momentum continues its downtrend, limiting the rally should it materialise. While strength could return in the near term, the STI is likely to remain below its declining 200-day moving average. Immediate support is at 3,000.
SATS ($4.69) is oversold and at year’s low
Prices are at a new one-year low. There should be a temporary rebound as quarterly momentum has flattened and has formed a minor positive divergence with price, and short term stochastics is turning up from the bottom of its range.
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Any rebound meets with resistance at $4.90. Note though that annual and 24-month momentum are falling, limiting the rebound, and indicating that the decline has yet to run its course.
