Technically, the daily RSI seems to be turning back in the positive direction while the MACD continues to trend lower following its negative crossover in early Aug; these mixed signals suggesting that momentum in the near term could be turning for the better while medium term momentum still remains bearish.
The index is already nearing the firm supports; the first is the gap at 2485-2503 (formed over 23-24 Jul); the second is at 2425 (significant peaks in early Jun and also near the 50-day moving average and lower Bollinger Band). These are critical levels and the subsequent reaction of the index at these levels could provide more insights to the sustainability of the index's medium to long term recovery.
On the upside, the index would face immediate resistance at 2600 (psychological level) with the more important cap found at 2681 (50% retracement of the plunge from 3906 to 1455).
ComfortDelgro Corporation Ltd: Worth a Second Look ? ComfortDelgro goes ex-dividend on 25 August. Coupled with a technical buy, investors might consider taking a second look.
SBS Transit Ltd: Buy on Weakness ? SBS Transit goes ex-dividend on 25 August. Coupled with a technical buy, keen buyers might want to watch prices and buy on weakness.
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