SINGAPORE (Nov 30): The Straits Times Index broke above its 50-day moving average at 3,101, and above a minor resistance at 3,100.
The breakout indicates a measuring objective of 3,240. The Nov 2 high of 3,116 needs to be breached for the index to meet its objective.
Quarterly momentum strengthened and held on to its break above its own moving average and resistance.
Directonal movement indicators are strengthening with ADX flat and the DIs turning positive. The 21-day moving average continues to strengthen and short term stochastics is rising.
Annual momentum continues its downtrend, limiting the rally. While strength could return in the near term, the STI is likely to remain below its declining 200-day moving average.