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Stock Analysis by Dr. Robin Han

Title: Declout, will it have a nice rebound?

Recently, not only STI, almost the whole world stock market is going down rapidly. Let’s look at STI first. From both Moving averages and MACD histogram, we can see that the current downtrend is quite strong. Usually for a strong downtrend, it will not turn back to uptrend all of a sudden, therefore I am still bearish on STI for Mid to long term. However, STI is very oversold at this moment and may have a short term rebound. It will be a chance to get out if rebound really happen in the next a few days.

Declout was strong during end of May. However started going down in early June and dropped a lot without a significant rebound thereafter. Now it is sitting above the important support at 0.2. The support seems pretty strong, in the past two trading days when STI was panic selling, Declout hold well. This is sign of strength. Besides, this stock is very oversold, it may have a strong rebound in the next a few days from technical angle. If STI rebound, Declout may rebound even stronger. One may look out to trade the rebound by breakout of the resistance at 0.225. Do take note that this stock is in downtrend already, the upside is limited because this trade is to catch a rebound.