Technical Analysis on STI 2015-05-07

The STI traded below the previous day closing point throughout the day and closed down 27.01 points (-0.78%) at 3432.78 on 07-May-2015, with losers outpacing gainers approximately 3 to 1.

The Straits Times Index STI Technical Chart 2015-05-07
The Straits Times Index STI Technical Chart 2015-05-07
(click on the image to view the larger chart)

For technical analysis perspective, the index didn't manage to hold its ground at 50 days moving average and has fallen and traded below its 20 days moving average and 50 days moving average now. If the index manage to hold its ground at 100 days moving average which is about 3410, the STI may continue its uptrend in the short term.

RSI indicator of the STI is in the oversold region, and it has fallen to its new low since February 2014, while ADX indicator is now below 25, which implies that the STI is neither showing strong uptrend or downtrend.

However, MACD indicator is about to crossover the zero line, which may imply a bearish signal, though this has to be confirmed in the next few days.

The STI has already adjusted downward by about 3% from its recent high since 3 weeks ago.

Your comments are most welcome and appreciated.

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