SINGAPORE (Feb 2): Here are some charts for our technical analysis this week:
Straits Times Index (3,529, daily)
As far as trends go, the uptrend of the Straits Times Index remains intact despite a loss of 38 points during the week.
It remains comfortably above the 50-day moving average at now at 3,473.
Next week though, the index could retreat towards the moving average because quarterly momentum has broken down.
Elsewhere, stochastics is falling, and 21-day RSI has turned down. ADX is falling, and the DIs are turning neutral from a positive stance.
These indicators point to continued consolidation. The break below 3,550 is also a sign of short term weakness.
Annual momentum has not broken down yet, but it has flattened, confirming that the bull market is fatigued. The 24-month momentum has strengthened and should be able to stay resilient till the end of the year.
Sembcorp Marine ($2.79) brings cheer to investors
There is no stopping this stock. It has gained enormous relative strength against the market.
The surge out of the short sideways range at $2.57 constitutes a bull flag, indicating a vertical measuring objective to $3.15.
Support is raised to $2.57. If prices fall below this level, the recovery has been aborted.
Sembcorp Marine (weekly) is up but don’t get carried away
The counter’s non-stop ascent isn’t surprising. It is probably making up for lost time.
Prices had been on a downtrend for three years, and languishing sideways for a further one year. The long base fromation broke out in Jan when prices moved above $2.