Market Diary:
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Thursday, July 19, 2012

The Straits Times Index

In the chart below, the downtrend line has been tested numerous times. Although it was violated at point A by a false breakout, the downtrend line remains viable and vital. This line has now been violated again at point B. We need to watch whether it will mimic point A and turn out as a false breakout.

The chart below depicts an uptrend channel within the downtrend line. If the breakout turn out to be valid. We can expect the index to head toward the upper boarder of the channel.

Finally, the daily chart shows a bearish divergence between the RSI and STI price chart. This may signal some impending weakness ahead.