Chart 1: STI with moving averages and momentum
SINGAPORE (Aug 24): The Straits Times Index continues to hover around a support area, between 3,084 and 3,125 for the past 10 trading sessions. Volume has contracted during this formation, suggesting that current moves could be temporary floor. Quarterly momentum has turned up, but its trend remains downwards. And, the STI remains significantly below its moving averages. The 200-day moving average is currently at 3,212. The surge in volume on Aug 15 looks increasingly like climactic selling.
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