Short-term stochastics is turning up from the bottom of its range. The 21-day RSI is drifting sideways as is ADX. DIs are negatively placed. These indicators should be abe to turn up as quarterly momentum bottoms, reinforcing momentum and triggering a relief rally.
Meanwhile, the Straits TIme Index, which rebounded towards its decining 50-day moving average at 3,265 during the past five trading sessions, is likely to retest the twice tested support at 3,191 before a relief rally materialises.
When the rally materialises, it will need to move above 3,265 in order to gather upward momentum.
DBS Group Holdings ($24.90): Prices may fall lower before rebounding
Prices broke below the 50- and 200-day moving averages at $25.62 on Aug 31. This is negative.
Quarterly momentum is falling despite its oversold stance. Short-term RSI is drifting lower, ADX is falling and the DIs are negativey placed. Prices are likely to test $24. By then, indicators would be sufficiently oversold to trigger a rebound in which event the upside would be $25.62.
