Right timing

STI approaches support; indicators continue decline

SINGAPORE (Oct 4): The Straits Times Index is approaching its Aug 28 low of 3,056 as short- and medium-term indicators are becoming increasingly oversold. Quarterly momentum is at a one-year low. This could provide some support in due course. In the immediate term though, sentiment remains poor and quarterly momentum may test a new one year low first before rebounding.

Chart 1: STI with moving averages and momentum

Selling pressure abates but STI eases further

SINGAPORE (Sept 27): The decline, following a test by the Straits Times Index of the confluence of the 50-, 100- and 200-day moving averages at 3,216 to 3,244 range, is likely to continue. Quarterly momentum is likely to continue declining and has yet to reach the low end of its range.

Chart 1: STI with moving averages and momentum

Upmove gathers momentum

SINGAPORE (Sept 7): Overall, strength could be returning to the markets, as evidenced by the rebound by the Straits Times Index accompanied by an expansion in volume on white candle days. Quarterly momentum rebounded and is attempting to break above its equilibrium line.

Rebound should continue

SINGAPORE (Aug 30): The rebound by the Straits Times Index appears tentative but is likely to continue as quarterly momentum continues to recover.

Chart 1: STI with moving averages and momentum

Minor positive divergence appears

Chart 1: STI with moving averages and momentum

Short term indicators oversold

SINGAPORE (Aug 16): The Straits Times Index has formed a minor harami with white candlesticks. Haramis are usually not strong temporary bottoms or tops. As such, the market’s downdraft may not completely have ended. However, conventional chart patterns suggest some deceleration in the decline.

Right timing: STI approaches resistance; indicators overbought

SINGAPORE (July 6): At current levels of 3,366, the Straits Times Index is approaching its Apr 29 high of 3,407, which was also the high for the year. Important highs and lows usually represent a form of resistance or support. In this case, 3,407 is likely to represent resistance. Interestingly, volume has eased mildly as the index rose, a sign that resistance is approaching.

Right timing: Downwards drift continues despite oversold readings

(May 31): With the break below the 200-day moving average at 3,180 caused the decline by the Straits Times Index to quicken. Support stays at Jan low of 3,012. The break below its equilibrium line by quarterly momentum and its continued decline has caused the index to weaken. In addition, volume expanded as prices fell, indicating selling pressure.

Right timing: STI reaches support, decline to slow

SINGAPORE (May 18): The Straits Times index 68 points or just 2% over the past five trading sessions compared with a decline of 3.5% in the previous week.

This has brought the index to 3,20, below the 100-day moving average at 3,230 but above the flat 200-day moving average at 3,167.

There could be a short term pause to the decline as stochastics is at the bottom of its range, and 21-day RSI is at 38. RSI’s support is at 30.

Right timing: STI’s upclimb supported by momentum and moving averages

SINGAPORE (Apr 20): There has been little change in the trend and chart pattern of the Straits Times Index.

The index has been on a very glacial ascent towards 3,420, the target indicated when the index broke out of resistance at 3,190 in mid-Jan.

Quarterly momentum eased during the past four trading sessions. The 100- and 200-day moving averages have turned positive.

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