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.