(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.
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.
(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.
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.
SINGAPORE (Mar 23): Although quarterly momentum appears ambivalent as it is consolidating beneath its own moving average, prices are intact. They have established support at the confluence of the 50- and 200-day moving averages which are moving into an increasingly positive stance at 3,217 and 3,186 respectively. The index may well be able to regain its 50-day moving average as short term stochastics is turning up from the bottom of its range.
SINGAPORE (Mar 16): The Straits Times Index drifted lower during the week and is now supported by the confluence of the 50- and 200-day moving averages at 3,204 and 3,192 respectively. A break below this level is unlikely as down-momentum is weak. This is evidenced by falling ADX which is currently at 15. The DIs are negatively placed. Short term stochastics is approaching the low end of its range.
SINGAPORE (Mar 2): The market could continue to consolidate in the near term. Quarterly momentum has encountered resistance and turned down.
However the rally by the Straits Times Index that started in Dec is still in force as the index remains above its moving averages and momentum remains in positive territory.
SINGAPORE (Feb 22): The recovery by the Straits Times Index that started towards mid-January is likely to continue despite short term hiccups. Quarterly momentum is in rising mode, the 50- and 100-day moving averages are positively placed, and the index remains above its 200-day moving average.
SINGAPORE (Jan 4): On the face of it, the Straits Times Index had a rocky start to the year. The index remains below its 50-, 100- and 200-day moving averages. However, the STI managed to hold above its one year intra-day low of 2,955.
