SINGAPORE (Aug 4): Here are two charts for our technical analysis this week:
STI daiiy (3,265)
The Straits TIme Index tested resistance at its declining 50-day moving average as it made an intra-day high of 3,328 on Aug 1. Since then, quarterly momentum has resumed its downtrend, making a new one-year low.
Short-term stochastics has turned down from the top end of its range. ADX is falling, and DIs are neutral suggesting that the downmove is not likely to gather downside momentum. Support should appear at the July 6 low of 3,191 for the time being.Long-term indicators are weak.
The 100- and 200-day moving averages have made a negative cross; annual momentum continues to fall after moving below its equilibrium line, and two-year momentm is turning down.
DBS Group Holdings ($26.13) Retreats from resistance, testing support
Prices were unabe to move above the confluence of the 50-and 100-day moving averages which have made a negative cross at $27.54.
Prices are now testing the crucial 200-day moving average at $26.08. Quarterly momentum is falling, but short-term indicators are ambiguous.
If prices break below $26.08 on Aug 6, and they could break down since volume expanded on the black candle days, the downside could be as low as $24.
