Technically, the chart of the Straits Times Index has improved, as the STI ended the week of July 18-22 up 82 points, at 3,181, taking the index above its 50-day moving average at 3,159, and the resistance level of 3,160.
Quarterly momentum, which was showing a positive divergence with the STI in the week of July 12-15, has continued to rise. On the other hand, annual momentum remains at the low end of a two year range; and the 100-day and 200-day moving averages are poised for a negative cross on July 26 at 3,230.
Since indicators are mixed, the upside for the current rally is likely to be at 3,230, while support remains at 3,095.
