Right timing

Upmove gathers momentum

SINGAPORE (Sept 7): Overall, strength could be returning to the markets, as evidenced by the rebound by the Straits Times Index accompanied by an expansion in volume on white candle days. Quarterly momentum rebounded and is attempting to break above its equilibrium line.

Rebound should continue

SINGAPORE (Aug 30): The rebound by the Straits Times Index appears tentative but is likely to continue as quarterly momentum continues to recover.

Chart 1: STI with moving averages and momentum

Minor positive divergence appears

Chart 1: STI with moving averages and momentum

Short term indicators oversold

SINGAPORE (Aug 16): The Straits Times Index has formed a minor harami with white candlesticks. Haramis are usually not strong temporary bottoms or tops. As such, the market’s downdraft may not completely have ended. However, conventional chart patterns suggest some deceleration in the decline.

Right timing: STI approaches resistance; indicators overbought

SINGAPORE (July 6): At current levels of 3,366, the Straits Times Index is approaching its Apr 29 high of 3,407, which was also the high for the year. Important highs and lows usually represent a form of resistance or support. In this case, 3,407 is likely to represent resistance. Interestingly, volume has eased mildly as the index rose, a sign that resistance is approaching.

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: 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.

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 stable despite global market volatility

SINGAPORE (Mar 29): The Straits Times Index stayed remarkably stable despite volatility in global markets. Its level is unchanged week-on-week. The 50-day moving average is also unchanged at 3,217. Although quarterly momentum continues to drift sideways, the increasingly positive stance of the moving averages is likely to support the index. ADX continues to fall and is at a one year low, at 10. This suggests that prices are likely to remain within a narrow range.

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