Quarterly momentum continues to rise, but annual momentum and and two year momentum tested their declining moving averages and retreated.
SINGAPORE (June 26): The Straits Times Index appears poised to move below the confluence of a support and its 50-day moving average at 2,605. On June 19, there were hints of supply/selling when the index closed below its open on a surge in volume. During the week of June 22–26, the STI managed to hold at or around its support area. In the week of June 29–July 3, the index may drift below its support area.
This is because the downturn and decline by short term stochastics, coupled with the downturn of 21-day RSI, and other short-term indicators, may drive the index lower. In addition, the DIs are negatively placed, although ADX is at 15 and falling. ADX and directional movement indicators may limit any decline to a gentle downwards drift.
