SINGAPORE (May 25): STI tests support at moving averages
Despite a mild 16-point downward drift, the Straits Times Index is at an important juncture, as it tests the confluence of the 50- and 100-day moving averages at 3,507 to 3,510. Quarterly momentum retreated but could hold at its equilibrium line.
ADX is low at 13.5. This coupled with negatively placed DIs suggests that prices are likely to drift sideways with a mild downward bias. Short term stochastics could turn up, and this could trigger a mild rebound. Resistance stays at the twice tested 3,609 level.