CFA Society Singapore
SINGAPORE (Jan 25): The Straits Times Index looks set to challenge and perhaps break out above resistance and its 200-day moving average at 3,245. Volume has expanded, and quarterly momentum looks able to move up into a vertical rise.
The 50- and 100-day moving averages are poised for a positive cross, which should confirm the ability of the index to break out. The stronger medium term indicators should be able to support further advances for the STI. This is despite the downturn of short term stochastics at the top end of its range, and the faltering of 21-day RSI. The earlier break above 3,190 indicates a target for 3,420. Support and the fail safe level is at 3.190 below which the upside is no longer valid.
Wilmar International set to strenghten
Prices have just moved above the several-times tested resistance at $3.26. The breakout has been confirmed by the positive cross and upturn of the 50-, 100- and 200-day moving averages.
Quarterly momentum has also broken out. Volume has expanded, but will need to rise further if the breakout is to be successful. The major negative signal is the shooting star like formation on the candlestick chart. The upside could be as high as $3.60 if prices are able to stay above $3.26 for the next three sessions.
Olam should head higher after breakout
Although prices have risen by just 1 cent from Jan 18, at the current price of $1.82, the stock has been able to move above its 100-day moving average at $1.79.
Quarterly momentum appears poised to break out of its resistance at its equilibrium line. The break above $1.77 indicates a target o $2.00 which remains valid.