May 9-10, TA for STI

May 9-10, TA for STI

1. Trend Indicators,

• MACD - 9D signal line trending toward 0 
• Price cross below 20D, 100D MA (indicate side trending) and sitting at 50DMA (indicate a possible rebound)

2. Momentum Indicators,

• RSI - at 35%, trending flat (indicate undecisive)
• Stochastic - at 12% oversold (indicate a possible rebound)

3. Candlestick

• On May3-4, 2 black crows (selling pressure)
• On May5-6, Doji (indecisive) and white Hammer (bullish reversal) respectively. (indicates a possible rebound)

4. Support and Resistance line

• Resistance 3140 and 3200
• Support 3070 and 2932
• Bollinger Band at lower Range (indicate a possible rebound)

The TA indicators give a general mixed signal and also a possible rebound in the making. Since May 3-4, Market already anticipate a general correction (-3.3% drop) of the GE results. So with PAP winning 81/87 with 60% winning votes but a drop of 6% confidence shares as compared to 2006 of 66% and 2001 of 75%.  How would the market reacts on May 9? It's important to monitor whether it breaks the support line of 3070. If breaks the support, then market decision is to punish it for another 3-4% of STI index. As long as index stays at 3070, a rebound indicators will be getting firmer.