SINGAPORE (May 4): The STI’s uptrend remains intact. However signs are emerging of fatigue. The index tested 3,400, a psychological resistance and retreated. In the meantime, short term stochastics has flattened along with 21-day RSI, setting the indicators up for forming a negative divergence between indicators and the index.
Quarterly momentum remains in positive territory and above a support level. The 50-, 100-, and 200-day moving averages are positively placed. Still, in the short term, the STI may earn a well deserved consolidation. Immediate support appears at 3,350.
Venture Corp set to test support
Venture Corp’s share price is approaching a support at $16.63, a level that corresponds to the confluence of the 100- and 200-day moving averages. Quarterly momentum is in sharp retreat suggesting that prices are likely to move towards the support level.
Starhub stabilises
Prices have stabilised at $1.50 and have hovered around this level for three months. Quarterly momentum has also stabilised and is showing signs of forming a positive divergence with price. Although prices have moved above its 50-day moving average at $1.54, it maybe too early for a rebound or recovery as volume has not shown signs of expansion. Volume is essential for a breakout, and the absence of volume points to further sideways movement for prices.
