Although the Straits Times Index started the week on a firm note, it lost most of its gains, and ended 53 points lower week-on-week. Much of the decline occurred on Aug 20, when the STI fell to 2,527, before stabilising to end on at 2,528.

Unfortunately, the move on Aug 20 which caused a black candle, was also accompanied by an expansion in volume, an indication of supply/ selling.

Short-term stochastics continues to rise, and this could stabilise prices initially. On the other hand, 21-day RSI is on the retreat. ADX has turned up, and the DIs are negatively placed, suggesting that the probability of weakness in the market is higher than the likelihood of a rally.  

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook