STI and short- and medium-term indicators have stabilised
Quarterly momentum languished during the past four trading sessions, but remains above a resistance and its own moving average. In addition, ADX is neutral after a period of being negatively placed. The 21-day RSI remains intact.
The Straits Times Index (3,052) remains within a tight range as volume dwindles. However, since medium- and short-term indicators could strengthen, the STI could rebound to the Nov 2 high of 3,116, above the declning 50-day moving average of 3,107.
Annual momentum continues its downtrend, limiting the rally should it materialise. While strength could return in the near term, the STI is likely to remain below its declining 200-day moving average. Immediate support is at 3,000.
SATS ($4.69) is oversold and at year’s low
Prices are at a new one-year low. There should be a temporary rebound as quarterly momentum has flattened and has formed a minor positive divergence with price, and short term stochastics is turning up from the bottom of its range.
Any rebound meets with resistance at $4.90. Note though that annual and 24-month momentum are falling, limiting the rebound, and indicating that the decline has yet to run its course.
