SINGAPORE (July 28): Here are some charts for our technical analysis this week:

STI daiiy (3,324) After rebounding 133 points since the low of 3,191 on July 6, the Straits Times Index is approaching its still declining 50-day moving average at 3,352. The moving average is falling at around four points a session.

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Although quarterly momentum is rebounding off a low level, there are no signs of a positive divergence, hence, the base formation has not completed. The result could be the index inching higher, to whipsaw the moving average. The 100- and 200-day moving averages have made a negative cross at 3,431.

Short-term stochastics and 21-day RSI are likely to continue rising. RSI is now at its equilibrium line. If the index moves above the 50-day moving average, resistance appears next at 3,375.

https://s3-ap-southeast-1.amazonaws.com/tesuploads/PC+Lee/July+28/chart%202.png

Annual momentum has fallen to its equilibrium line where it could find temporary support. Overall though, long-term momentum has turned down and this is likely to limit the upside, and cause the index to resume its decline in a few weeks.

DBS Group Holdings ($27.06) challenges resistance Prices are at the confluence of the 50-and 100-day moving averages which appear poised for a negative cross at $27.54.

https://s3-ap-southeast-1.amazonaws.com/tesuploads/PC+Lee/July+28/chart%203.png

Since short-term indicators coud continue rising, and quarterly momentum is rebounding off a two year low, prices are likely to rise to at least $27.54. Both annual momentum and two-year momentum have turned down and this could limit the upside.

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