Week-on-week, the Straits Times Index lost a mere six points. But this calm belies a one-day 37-point drop on April 21, followed by a rebound on April 22. Technically, the STI’s quarterly momentum is struggling and the tussle could be resolved on the downside. In addition, short term stochastics and 21-day RSI are falling. In the immediate term, the STI may continue to stay within the 3,150-3,220 range. However, the uptrend may not resume in the next five trading sessions (end-April) as has been previously mentioned. If the index breaks below 3,150, the consolidation may linger on for a “sell in May and go away” theme. The original break above the narrow 3,071 to 3,118 range in the week of Mar 15-19 still remains valid as does the upside of 3,368 to 3,377 but this may take a longer time frame to achieve.

Rotational interest has moved from property-related stocks to a couple of conglomerates. Keppel Corp rebounded off the confluence of its 50- and 100-day moving averages at $5.25 in the week of Apr 19-23. Resistance/ breakout is at the twice tested $5.50 level. Quarterly momentum is a trifle weak currently, but could turn up if prices are able to move above $5.50. The 2021 high was $5.73 on a closing basis.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook