STI may have already corrected 5.6% over the last four down sessions, and it may be due for a technical rebound. But the daily MACD indicator has just initiated a negative crossover (though still high within the positive region); the daily RSI has since fallen out of the overbought region and could continue to ease towards the 50% mark.
We believe that the market may still be intent on testing the near-term support at 2520 (centre of the Bollinger Band) and seeing it hold before staging a stronger rebound; otherwise, the next stronger base for a rebound will come from the support around 2484 and 2503 (gap formed during 23 and 24 Jul).
On the topside, we think that the continued failure to clear 2681 (50% retracement of the plunge from 3906 to 1455) would leave the STI vulnerable to a large pullback, given the strong gains to date. The next potential reversion point is at 2751 (significant bottoms in Jan and Mar 08).
Failed to clear the 2700 key level: Technical rebound aside, the index is still seen locked in a correction mode after failing to clear the 2700 key resistance last week.
RSI falling out of overbought level:With the RSI just fallen out from the overbought level, it seems to suggest that the downside momentum is still intact.
MACD initiating a bearish crossover.The MACD indicator has exhibited a bearish crossover, suggesting that the correction could extend further in the coming week.
Sponsored Links
No comments:
Post a Comment