Quarterly momentum has eased, short term stochastics has flattened at the top end of its range, and 21-day RSI has faltered at the top end of its range. These indicators suggest that some form of consolidation is likely soon.
SINGAPORE (July 6): At current levels of 3,366, the Straits Times Index is approaching its Apr 29 high of 3,407, which was also the high for the year. Important highs and lows usually represent a form of resistance or support. In this case, 3,407 is likely to represent resistance. Interestingly, volume has eased mildly as the index rose, a sign that resistance is approaching.
