- The Straits Times Index (STI) has continued to drift lower despite our expectations of a minor rebound. However, there are some signs pointing to a possible minor rebound in the near term. The stochastic indicator has broken above its downtrend line, suggesting that the index is poised for a rebound, and coupled with the MACD which is on the verge of cutting upward, there is a possibility of a minor rebound in the near term.
- BUT, any ascension in the index would be capped by the medium-term downtrend line, which is also within the initial resistance level around 3,000 - 3,100 that we had set in our earlier reports. The 50- and 100-day moving averages are also in proximity to this resistance level, hence the upside seems limited at this juncture.
- We anticipate the downtrend to resume after a near-term temporary relief. This would take the index down to test the recent Mar lows around 2,745. A break below this level would result in the STI falling towards our subsequent support around 2,500 - 2,600.
No comments:
Post a Comment