The STI ended the week at 2,490, a shade above the Aug 3 low of 2,484. This could well be tested in the week of Sept 14–18, and possibly breached on the downside. If so, a downside objective is indicated with the vertical measurement. Initially, though support appears at the 2,389–2,400 range. By then short term indicators could be sufficiently oversold to trigger a significant rebound.
During the market's weaker phase, the index is likely to have difficulty moving above the confluence of its moving averages at 2,570-2,587.
See also: STI may retreat on strong overbought pressures but REIT Index may break out
SIA not ready for take off yet
Singapore Airlines’ ($3.56) chart pattern remains weak as prices remain entrenched beneath the 50-day moving average resistance line. Additionally, its medium term indicators point to continued weakness, with quarterly momentum declining, ADX rising and DIs negatively placed. In the short term, stochastsics is approaching the bottom of its range, which could set the stock up for a temporary rebound in the week of Sept 14–18. However, this is unlikely to indicate the end of the downwards drift.
