Short-term indicators are rebounding. The 21-day RSI has turned up at its 33 level causing a positive divergence between STI and momentum. Stochastics is also likely to turn up after forming a double bottom. ADX has turned down, as DIs are negatively placed, suggesting that the strong down momentum has ended for the time being.
The relief rally is likely to be temporary and the STI may not break above the 50-day moving average at its first test of the indicator.
Venture Corp (416.54): Testing support
Prices found support at $15.92 but the chart fomration looks weak. The stock has already fallen below the moving averages, with the 50-day moving average at $17.23. Indicators point to a likely breakdown, in which event the downside could be $13.20. A move above $17.23 would invalidate the downside.
