The likes of Morgan Stanley have turned positive on China. There could be some recovery on the oversold Lion-OCBC Securities Hang Seng Tech ETF. However, the Lion-OCBC Securities China Leaders ETF remains weak for the time being.
Selling pressure has alleviated for the Straits Times Index after it touched a one-month low of 3,158 on May 31. Week-on-week, the STI rebounded by 20 points to end the first week of June at 3,186. The short-term positive divergence between smoothed RSI and the index should provide some impetus for the index to attempt a further rebound. In this event, resistance appears at the directionless 200-day moving average at 3,230. Support has been established at 3,158.
The STI will add a new constituent in the form of Seatrium shortly, which goes some way into diversifying the index away from the three local banks, properties and REITs.
