SINGAPORE (Jan 26): Here are some stocks for our technical analysis this week
Straits Times Index (3,567, daily)
The Straits Times Index rose 17 points over the week. It had risen to 3,609 on Jan 24 but eased after forming a minor tweezers reversal on the candestick chart.
Support for this minor downmove is at the 3,521 to 3,550 range. This is still comfortably above the 50-day moving average at 3,460.
Short-term indicators are somewhat fatigued, and stochastics appears ready to turn down at the top of its range.
The 21-day RSI is at the top of its range but its trend remains upward.
Quarterly momentum remains intact; ADX is rising and the DIs are positively placed.
The sum of these indicators suggests that there is likely to be some consolidation in the near term. The 2007 high was at 3,805.
STI Weekly: annual momentum struggles
Annual momentum has flattened, and may ease below its own moving average.
It may continue to move sideways to marginally lower. This is a sign that the bull market is ageing.
The 24-month momentum has strengthened and should be able to do so till the end of the year.
The interaction between these two indicators suggests that the STI will stay intact for the first half of the year.
