The chart pattern still looks corrective. Short-term stochastics has turned down from the top end of its range. This has occurred as directional movement indicators remain in corrective mode. ADX is falling, and the DIs are now neutral, after being positively placed for the past eight weeks. Quarterly momentum and the moving averages continue to rise.
STI (Weekly)
The uptrend off the long-term annual and 24-month momentum remain intact. However, raw annual momentum is struggling to maintain its uptrend. This bears watching because a downturn would lead to a meaningful decline.
To date, the continuation pattern still suggests a possible upside. The lower boundary has been established at 3,341 and the upper boundary at 3,449. A successful break indicates an upside of 3,600.
Venture Corp ($19.76) weakens, needs to rebound soon
The counter continues to be in corrective mode, breaking below a minor support at $20.40.
Quarterly momentum, which has turned down, continues to fall and volume has increased on black candle days. The correction may have further to go. At this stage, it appears that the uptrend should remain in intact. The rising 50-day moving average is currenty at $19.67. Resistance/ breakout appears at $22.08.
