SINGAPORE (Sept 7): Here are two charts for our technical analysis this week:
STI daily (3,134): Short-term rebound imminent
The Straits Times Index formed a doji after declining for the three sessions. It was also the first doji during the past four weeks. This is suggesting that the strong down momentum of the past month may be dissipating.
Short-term stochastics is attempting an upturn from the bottom of its range. Quarterly themomentum should flatten this week (Sept 10-14). Momentum should start forming a positive divergence with price. Initial resistance appears at 3,191.
City Developments ($8.72): Bounce likely
Prices fell to a new one year low of $8.55 before reboudning to close at $8.72. Down momentum should start to abate. Short-term stochastics has turned up. ADX continues to rise and the DIs are negatively placed. But this is likely to lag.
The initial rebound should materialise in the week of Sept 10-14. Resistance appears initially at $8.94 first. The rebound could be tenuous initially, and prices may turn down to build a base after the rebound.
