SINGAPORE (Mar 2): The market could continue to consolidate in the near term. Quarterly momentum has encountered resistance and turned down.

However the rally by the Straits Times Index that started in Dec is still in force as the index remains above its moving averages and momentum remains in positive territory.

The 50- and 100-day moving averages are positively placed, and the index remains above its 200-day moving average, although the 200-day moving average is still declining.  

Short-term stochastics has turned down, and 21-day RSI is in sharp retreat. ADX is falling and the DIs are neutral. These indicators suggest a mild retreat, with prices drifting sideways to lower.

Support is at the breakout level of 3,190. The break above 3,190 indicates a target for 3,420, and this remains valid for the time being. Only a break below 3.190 indicates the upside is no longer valid.

Keppel REIT’s upmove continues
Keppel REIT, which has been on an uptrend since Dec appears to have sufficient strength to continue its upmove. On Mar 1, prices moved above a minor sideways trend accompanied by an expansion in volume. While this stock provides most of its returns through its yield, the break above $1.20 indicates a target of $1.31 and this may be attained before a correction occurs.