Short term bounce aside, STI's downdrift likely to persist

The Edge Singapore
The Edge Singapore 9/25/2020 07:00 PM GMT+08  • 2 min read
Short term bounce aside, STI's downdrift likely to persist
Despite a positive divergence SIA has yet to complete a base formation and breakout. The STI's next support is at 2,450.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

The Straits Times Index drifted lower, losing around 25 points week-on-week to end at 2,472. Its movement was a lot more benign than the volatility that has befallen the US markets. The CBOE Volatility Index (VIX), currently at 29.5 has been creeping higher from a trough of 25.5 on Sept 15. That maybe the new normal for the VIX as overvalued tech stocks face reality.

Locally, the STI’s short term stochastics is at the bottom of its range and an upturn could provide some reprieve from the downwards drift. Any rebound is likely to be tepid. ADX is rising, and the DIs are negatively placed. In addition, quarterly momentum has resumed its retreat after failing to move above its own moving average.

These indicators suggest that overall pressures are likely to remain downward. Support at 2,484 was breached albeit on low volume. The next short term support is at 2,450.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.