Tiong Seng Holdings(25 cents) - Poised for a breakdown

Although short-term indicators could be attempting a rebound, they are unlikely to move up much. Pressures appear to be downwards. Quarterly momentum is falling, forming a series of negative divergences with price. Last month, it fell below a support at its equilibrium line into negative territory.

This suggests that prices should be able to fall below a several-times-tested support at 25 cents. Such a breakdown would indicate an initial target of 20 cents. The downside may not be reached immediately, but prices are set to drift gradually lower towards that level.