Short-term stochastics continues to rise, and this could stabilise prices initially. On the other hand, 21-day RSI is on the retreat. ADX has turned up, and the DIs are negatively placed, suggesting that the probability of weakness in the market is higher than the likelihood of a rally.
Although the Straits Times Index started the week on a firm note, it lost most of its gains, and ended 53 points lower week-on-week. Much of the decline occurred on Aug 20, when the STI fell to 2,527, before stabilising to end on at 2,528.
Unfortunately, the move on Aug 20 which caused a black candle, was also accompanied by an expansion in volume, an indication of supply/ selling.
