SINGAPORE (May 11): Quarterly momentum surged, rising smartly off its equilibrium line. Momentum also simultaneously rose above its own moving average. However, short-term stochastics has turned down. ADX that reflects the price trend, is falling. When ADX falls, prices are moving sideways.
The lower ADX is, the less of a trend there is. ADX is at 17. The DIs are neutral. This indicator confirms that the index remains range-bound despite a 35-point rise to 3,570 during the week. Resistance stays at 3,609, this year’s twice tested high. The moving averages remain intact. The rising 50- and 100-day moving averages are at 3,503. These lines are likely to continue acting as support lines.
DBS’s uptrend remains intact
DBS remains in an uptrend based on prices that have been adjusted for a hefty dividend payout earlier this month. Quarterly momentum turned up mid range, and remains in overbought territory.
Elsewhere, short-term indicators have turned down. ADX is falling, and DIs are neutral. In addition, volume contracted drastically as prices rebounded during the past three trading sessions. These divergences, where prices rise or stay intact as indicators begin to turn down suggest that the upside is likely to be limited to the adjusted high of$29.96. Support and short term breakdown level is $28.85.
