Let’s take a quick look at STI.
STI broke up of a downtrend channel, as indicated by the 2 black downtrend lines. The next resistance we should see is around 2,800 points. Increasing volume from the past few days may help to break that 2,800 level.
Looking at moving averages, 20dma looks to cross the 50dma level. A crossover can indicate a uptrend. Thing to note, 200dma still downtrend.. but less steep.
As for DJI, it seems like it’s hovering around the area indicated by the red line. Technically, we are seeing the aftermath of a double bottom. As shown by the past trend, there is a high chance that we will see the same pattern moving forward. The 17,000 area might be a near term resistance.
During this period, it is possible that profit taking is taking place, by inferring form the slow down in trend.