Between CapitaLand and CapitaLand Integrated Commercial Trust (CICT), CapitaLand has greater relative strength comparative. Prices have moved above a several times tested resistance area at $3.20 to $3.23, just as the 50- and 200-day moving averages have made a positive cross. This coupled with rising 50- and 100-day moving averages, and volume expansion should provide sufficient impetus for prices to move progressively higher. CapitaLand ended at $3.29 on Dec 18, leaving plenty of upside over a period of a couple of months as the break above $3.20 indicates an eventual upside of $3.90, with the breakout level providing support in the short term.
CICT - currently at $2.14 - could be vulnerable to a temporary setback. On Dec 18, a black candle was accompanied by a clear expansion in volume indicating the presence of some short term sellers. Quarterly momentum has also retreated. The retreat is likely to be relatively mild as the 50-, 100- and 200-day moving averages have made simultaneous positive crosses with each other at $1.94. Immediate support appears at $2.09, while resistance appears at $2.25.
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Elsewhere, Keppel Corp may soon resume its ascent after a temporary correction which saw prices ease from $5.47 to $5.20. Although prices have risen by almost 32% since its Aug low, there is further upside from here, albeit not another 30%. The next resistance, now that indicators are supportive of another upwave, is at $6.
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The Straits Times Index rose 27 points week-on-week, ending at 2,848 on Dec 18. However, the chart pattern indicates that the index may want to consolidate further. Quarterly momentum has eased, and the 21-day RSI continues to ease after hitting a high of 76 on Nov 23. On the other hand, the 100-day moving average - now at 2,605 has just crossed above the 200-day moving average at 2,600. This is likely to provide support for the STI, limiting the downside to the 2,795 to 2,800 range. Short term term stochastics has turned up in mid-range. If quarterly momentum had gained strength the stochastics upturn would be a strong bullish signal. In the absence of strengthening quarterly momentum, the STI may remain within a tight range ahead of Christmas Day.