Continue reading this on our app for a better experience

Open in App
Home Capital Right Timing

STI's CNY rally takes breather, may move into trading range

Goola Warden
Goola Warden • 2 min read
STI's CNY rally takes breather, may move into trading range
Straits Times Index stages temporary retreat as it moves into a consolidation range for a few weeks
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Ideally, support for the Straits Times Index is at the 3,180 to 3,183, around the 200-day moving average. The index ended the week of Feb 19-23 at 3,184. The 50- and 200-day moving averages have turned up after making a neutral to positive cross in early February. These slow-moving indicators should provide support areas for the index as it digests the gains made since the start of the year of the Dragon.

On Feb 20-21, the STI tested intra-day highs of 3,244 and 3,247, which is in the vicinity of a resistance area identified as 3,240 to 3,250. In the near term, this level may continue to pose resistance. Hence, while the main upmove of the market remains intact, a sideways ranging market, moving between 3,180 and 3,250 may persist.

Short-term RSI has eased from a mildly overbought level towards neutral levels and may continue to retreat, albeit modestly. Quarterly momentum and directional movement indicators remain intact.

Elsewhere, yields on the 10-year US Treasuries (10YT) appear increasingly likely to break above a resistance area that is represented by the confluence of resistance 4.34% and the 200-day moving average at 4.32%. Such a move may cause the S&P 500 and the Nasdaq indices, which made new all-time highs this month to retreat. The S&P 500 moved above 5,000 on Feb 9 and has remained above this level although this index could ease below 5,000. 

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.