SINGAPORE (Apr 20): Straits Times Index (Daily, 3,573)
The Straits Times Index experienced an almost non-stop advance of 234 points from 3,339 a fortnight ago, when it was testing its 200-day moving average at 3,375, to 3,539.
On Apr 19, the STI tested 3,604, just shy of the year’s high of 3,609 attained on Jan 24.
The STI undoubtedly strengthened against the Hang Seng Index, which is still significantly below its Jan high.
The rally enabled the STI to regain the confluence of its 50- and 100-day moving averages, currently at 3,475, the new support level.
A break above 3,609 provides a measuring objective of around 3,880. A break below 3,475 would lead to sideways fluctuations.
Quarterly momentum has rebounded and regained the equilibrium line – although its trend remains downwards. ADX is neutral, and the DIs have turned positive.
