SINGAPORE (June 19): Near term moves for the Straits Times Index may continue to be sideways as it was during the week of June 15-19. The STI started the week at 2,649, and ended it at 2,634. In particular on Friday, June 19, the index closed below its open although the range remained narrow. However volume surged, and this could indicate a supply/ selling.  

Technically, the STI continues to hold above a support area at 2,620 which was an earlier breakout level. At the same time, the 50-day moving average is at 2,601, and it could also provide additional support during the week of June 22-26.

Short term indicators have weakened. Stochastics has turned down from the top of its range. The 21-day RSI which had retreated from a high of 72 is at 49, and could continue lower. ADX retreated and is at 16 just as the DIs have turned negative. These suggest some uncertainty and that the STI is likely to stay within a narrow range.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook