Any rebound in the week of May 17-21 is likely to be temporary as quarterly momentum is easing; the 21-day RSI is falling and at 37; stochastics continues to fall, and ADX is flat. The DI, too, have turned sharply negative.
The Straits Times Index has been hit by the sell-in- May- and-go-away trend. It appears, however, that after falling almost 145 points week-on-week, the index may actually find support shortly, at the confluence of a support area at 3,050 and its 100-day moving average at 3,040. The original breakout took place at 3,070 and this should have provided some support, but has failed to do so.
Technically, the chart pattern shows the STI broke below a thrice tested support at 3,150 and its 50-day moving average at 3,140. The chart pattern also indicates that prices formed a minor top, and the downside from the break which took place on May 12 is 3,040.
