However, short term stochastics remains at the low end of its range; 21-day RSI is retesting the 30 level as prices plum to new one year lows. This could set the STI up for a positive divergence with RSI as the selling subsides.
As stochastics stabilises and turns up, the STI could stage a temporary bounce. Any such move is unlikely to get far, with the breakdown level of 3,109 posing resistance. Further out, the decline is likely to continue as annual momentum continues to fall.
DBS Group Holdings ($23.10) breaks down
Prices have broken below a neckline, and support at $24.34. A breakdown indicates a significant downside of around $20. The 50-, 100- and 200-day moving averages coalesced above prices and have turned negative. This is placing downward pressure on prices. Quarterly momentum turned down after its inabiity to move above its equilibrium line, and is in sharp retreat.
