FTSE Straits Times Index (FSSTI)

Right timing: Upside momentum intact for STI and blue chips

SINGAPORE (June 21): Here are three charts for our technical analysis this week:

STI with moving averages and momentum

Upward momentum continues as volume expanded on the continued rise in the Straits Times Index over the past five trading sessions. At 3,321, the index has moved above its flattish 50-day moving average at 3,260 and a resistance level of 3,264.

Right timing: Upside for immediate rebound at 3,264

STI with moving averages and momentum
(June 14): Short term stochastics is rising and has the potential to move up further, indicating another four to five sessions of rally.

Rising stochastics is being reinforced by rising 21-day RSI. These indicators should be able to sustain a further rise in the Straits Times Index to 3,264.

Quarterly momentum is rebounding but it could face resistance in the next couple of sessions, which would in turn stymie the STI’s rally. Elsewhere, ADX is falling as DIs have turned neutral from negative.

Right timing: Downwards drift continues despite oversold readings

(May 31): With the break below the 200-day moving average at 3,180 caused the decline by the Straits Times Index to quicken. Support stays at Jan low of 3,012. The break below its equilibrium line by quarterly momentum and its continued decline has caused the index to weaken. In addition, volume expanded as prices fell, indicating selling pressure.

Right timing: Downwards drift continues despite oversold readings

SINGAPORE (May 24): The decline by Straits Times index slowed during the past five trading sessions.

Despite this, the index slipped below the 200-day moving average currently at 3,183.

At the same time, quarterly momentum has fallen below its equilibrium line and continues its decline.

ADX is rising, and the DIs remain negatively placed, confirming the weaker phase ahead.

Right timing: STI reaches support, decline to slow

SINGAPORE (May 18): The Straits Times index 68 points or just 2% over the past five trading sessions compared with a decline of 3.5% in the previous week.

This has brought the index to 3,20, below the 100-day moving average at 3,230 but above the flat 200-day moving average at 3,167.

There could be a short term pause to the decline as stochastics is at the bottom of its range, and 21-day RSI is at 38. RSI’s support is at 30.

STI retreats towards 3,220

SINGAPORE (May 11): The Straits Times index retreated 119 points or 3.5% over the past five sessions, taking it below the 50-day moving average currently at 3,277.

At the same time, quarterly momentum continues to fall.

Although quarterly momentum is above its main support at its equilibrium line, its chart pattern is weak and has the potential to break below this support.

Elsewhere, both short term stochastics and 21-day RSI are in sharp retreat. ADX has turned down, and the DIs have turned negative

Right timing: STI approaches resistance

SINGAPORE (May 4): The STI’s uptrend remains intact. However signs are emerging of fatigue. The index tested 3,400, a psychological resistance and retreated. In the meantime, short term stochastics has flattened along with 21-day RSI, setting the indicators up for forming a negative divergence between indicators and the index.

Right timing: STI’s upclimb supported by momentum and moving averages

SINGAPORE (Apr 20): There has been little change in the trend and chart pattern of the Straits Times Index.

The index has been on a very glacial ascent towards 3,420, the target indicated when the index broke out of resistance at 3,190 in mid-Jan.

Quarterly momentum eased during the past four trading sessions. The 100- and 200-day moving averages have turned positive.

Right timing: STI upclimb supported by momentum and moving averages

(Apr 12): The Straits TImes Index is likely to continue its gradual ascent towards 3,420, the target indicated when the index broke out of resistance at 3,190 in mid-Jan. Medium term indicators are supportive and moving averages are strengthening with the 100- and 200-day moving averages are forming a positive cross.

Right timing: STI upclimb supported by momentum and moving averages

SINGAPORE (Aug 6): The Straits TImes Index managed to break above its 50-day average decisively at 3,223. in the meantime, the 100- and 200-day moving averages are poised for a positive cross. The index’s upmove was accompanied by a breakout by quarterly momentum, and volume expansion. This should support a continud advance.

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