SINGAPORE (May 4): The STI’s uptrend remains intact. However signs are emerging of fatigue. The index tested 3,400, a psychological resistance and retreated. In the meantime, short term stochastics has flattened along with 21-day RSI, setting the indicators up for forming a negative divergence between indicators and the index.
Quarterly momentum remains in positive territory and above a support level. The 50-, 100-, and 200-day moving averages are positively placed. Still, in the short term, the STI may earn a well deserved consolidation. Immediate support appears at 3,350.