SINGAPORE (Oct 14): Here are some charts this week for our technical analysis.
Straits Times Index (daily)
The Straits Times Index (3,319) gained 27 points during the week. While this appears modest, the index has risen above the confluence of its 50- and 100-day moving averages at 3,257, a level that is now a support.
Since quarterly momentum has turned up sharply from its equilibrium line, moving above its own moving average, the STI has sufficient steam to rise further. The 21-day RSI is rising moderately as well. All these indicators suggest that the STI has more upside.
Resistance stays at around 3,350. The year’s high was at 3,354. A break above this level provides the impetus for a test of 3,500.
Annual momentum has recovered and 24-month momentum continues its upwards trend. All in, the STI should continue its rally.
See also: STI steadies despite overbought US markets and rising US risk-free rates
Offshore stocks get back their bounce
Both Keppel Corp and Sembcorp Marine have seen their 50-, 100-, and 200-day moving averages converge and turn up simultaneously. Their quarterly momentum indicators have also turned up and broken above their equilibrium lines together.
For Sembcorp Marine, the break above $1.80 indicates an upside of $2.10.
Keppel Corp looks set to break above its current resistance level to test $8.10.
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Keppel Corp ($7.07) set to break out
Sembcorp Marine ($1.88) target $2.10
