SINGAPORE (Jan 12): Here are some charts for our technical analysis this week.
Straits Times Index (3,520, daily)
The Straits Times Index’s rally appears to have stalled. This should be temporary as short and medium term indicators are intact. Stochastics is still rising although it is at the top end of its range. The 21-day RSI eased but its trend is still up. The DIs are positively placed and ADX is rising. Quarterly momentum remains intact.
The break above the sideways range at 3,440, set an initial target of 3,550 with a new resistance at the natural level of 3,600.
It must be noted that the bull market is ageing. Also, annual momentum continues to struggle and the uptrend has almost run its course. Initial support is at 3,440.
Late cycle plays
Hock Lian Seng (51.5 cents) breaks out of tight range
Prices moved above a tight sideways range and the flat 200-day moving average at 47.7 cents on Jan 10.
This was accompanied by an upturn by quarterly momentum and ADX. DIs have also turned positive. Immediate resistance is at hand, at 51 cents. A successful breakout indicates an initial target of 57 cents and eventual upside of 60 cents. Support is at 47.7 cents.
CapitaLand ($3.78) upside potential intact
Prices are likely to continue to head higher following the break above the 50-, 100-, and 200-day moving averages in the first week of Jan.
The moving averages are turning up and quarterly momentum has broken out of a resistance at its equilibrium line. Other short and medium term indicators remain intact, although short term stochastics is at the top end of its range. The breakout indicated a target of $3.86 and prices may approach this level before retreating. Support stays at $3.60.
