Chart of the day: Singapore rally set to stall

PUBLISHED : Monday, 21 July, 2014, 3:18am
UPDATED : Monday, 21 July, 2014, 3:18am

Singapore’s benchmark Straits Times Index has risen steadily after bouncing from the psychologically-important 3,000 points level in the opening weeks of this year. But it has done so on steadily declining trading volume. This divergence is not a bullish signal. Meanwhile, major resistance, dating back to 2007, sits at 3,310 and a 78.6 per cent Fibonacci retracement from the record high at 3,900 comes in at 3,380. This all adds up to the risk of a stall very soon, though a dip back to 3,000 would be a buying opportunity given the long-term support trend.

Nicole Elliott is a technical analyst