In the short term, the STI is should rebound, with resistance appearing at the breakdown level at 3,109. When the downtrend resumes, the next support is at 2,900.
Annual momentum continues to fall, an indication that the STI’s downtrend has yet to run its course.
DBS Group Holdings ($24.42) should break below neckline support
Prices appear set to break below support at $24.34. A breakdown would cause a significant downside of around $20. The 50-, 100- and 200-day moving averages are coalescing above prices and set to turn negative. This would place downward pressure and cause a breakdown. Quarterly momentum is facing resistance and is likely to retreat, lending weight to the likelihood of a breakdown.
Short term stochastics is at the top end of its range and is beginning to turn down while 21-day RSI has turned down. ADX is falling, and the DIs appear poised for a negative cross. As these indicators weaken, the trend of annual momentum continues to be downwards. This indicator looks set to break below its equilibrium line.
Support has been estabished at the Sept 11 of 3,102, and resistance has now been established at 3,267.
