To The Moon

> STI closed the week of June 13-17 at 3,098, down 83 pts.

The index shows a falling trend channel in the short term with strong negative momentum, and has broken the floor of the rising trend channel in the medium long term.

A double-top formation has been formed by the two peaks of 3.440 and 3,442 reached in Feb and April this year, and it has since broken through the neckline support of 3,160 and key support of 3,132. The index is between support level of 3,060 and resistance at 3,130. A definitive break through of one of these levels predicts the new direction.

Overall the index trend is technically negative for the short and medium term. The charts are signaling negative, and indicate further decline may be expected. On the downside, a retracement to 2,900 or below may be a possible objective.

The short term upside is whilst the RSI curve shows a falling trend, RSI is below 30 and at the low end of its range, and this may trigger a temporary rebound. Particularly in big stocks, the low RSI may be a sign of some stocks oversold.

If an upward retracement of the STI decline since end-March pans out in the weeks ahead, STI could recover to 3,160, a 23.6% retracement between the low of 3,072 to 3,442, followed by 3,220, a 38.2% retracement.

(this is an opinion, not an invitation to trade)