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Right timing: STI needs more time to bottom

Goola Warden
Goola Warden9/1/2018 09:34 AM GMT+08  • 2 min read
Right timing: STI needs more time to bottom
SINGAPORE (Sept 1): Here are two charts for our technical analysis this week
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SINGAPORE (Sept 1): Here are two charts for our technical analysis this week

Straits Times Index daily (3,213)
As quarterly momentum has been falling since mid-May, the best time for it to bottom is mid-Sept and the best time for an upturn is likely to be the second half of Sept.

Short-term stochastics is turning up from the bottom of its range. The 21-day RSI is drifting sideways as is ADX. DIs are negatively placed. These indicators should be abe to turn up as quarterly momentum bottoms, reinforcing momentum and triggering a relief rally.

Meanwhile, the Straits TIme Index, which rebounded towards its decining 50-day moving average at 3,265 during the past five trading sessions, is likely to retest the twice tested support at 3,191 before a relief rally materialises.

When the rally materialises, it will need to move above 3,265 in order to gather upward momentum.

DBS Group Holdings ($24.90): Prices may fall lower before rebounding

Prices broke below the 50- and 200-day moving averages at $25.62 on Aug 31. This is negative.

Quarterly momentum is falling despite its oversold stance. Short-term RSI is drifting lower, ADX is falling and the DIs are negativey placed. Prices are likely to test $24. By then, indicators would be sufficiently oversold to trigger a rebound in which event the upside would be $25.62.

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