SINGAPORE (Oct 27): Here are some interesting charts for our technical analysis.
Straits Times Index (daily)
The Straits Times Index (3,386) rose 46 points during the week, breaking out of resistance at 3,350 decisively. The breakout indicates a target of 3,500.
Short term indicators are near the top end of their range and a short term correction is likely to materialise in the next few sessions. However, this is unlikely to derail the STI’s uptrend as annual and 24-month momentum indicators continue to rise.
Offshore plays set for higher levels
Sembcorp Marine ($1.85) should gather momentum
Price should be able to move higher from current levels. The break above $1.80 indicates an upside of $2.10.
See also: STI continues to move sideways as ominous signs develop in US treasury yields
This is confirmed by the series of positive crosses by the 50-, 100- and 200-day moving averages. Short term stochastics is a trifle weak. However, quarterly momentum remains intact and is likely to resume its uptrend.
Keppel Corp ($7.46) uptrend intact
Short term indicators are at the high end of their range and a temporary pull-back should materialise shortly.
See also: STI steadies despite overbought US markets and rising US risk-free rates
During this period, the uptrend should remain intact. Support is raised to $7.20. The eventual upside stays at $8.10.
