Right timing

Pause to continue as STI drifts sideways

SINGAPORE (Nov 16): The Straits Times Index peaked temporarily at 3,285, before retreating. At its current level of 3,238, the index has stayed above the 200-day moving average at 3,227 and the 100-day moving average at 3,208.

Chart 1: STI with moving averages and momentum

Temporary pause likely after breakout

(Nov 8): Although the Straits Times Index retreated on Nov 8, the rally should be able to resume. On Nov 2, the index had broken above its 200-day moving average at 3,226 accompanied by expanding volume.

Chart 1: STI with moving averages and momentum

Quarterly momentum remains strong after breaking out of its own resistance and equilibrium line. The 50-day moving average is also rising.

Resistance at hand; STI may break out

SINGAPORE (Nov 1): The Straits Times Index is testing and challenging its 200-day moving average at 3,225. While volume expanded, it remains to be seen if it is sufficient to trigger a clear breakout in the immediate term.

Chart 1: STI with moving averages and momentum

Rally has legs as short-term indicators continue to strengthen

SINGAPORE (Oct 25): Quarterly momentum continues to rise, and this trend is set to persist till momentum approaches its equilibrium line.

Chart 1: STI with moving averages and momentum

Rebound should continue as short-term indicators strengthen

SINGAPORE (Oct 21): Although the Straits Times Index rose just one point in the Oct 14-18 trading sessions, the index tested the 50-day moving average and attempted to move above it.

Chart 1: STI with moving averages and momentum

Quarterly momentum had rebounded off a one year low, but remains somewhat lackluster. However, momentum could gather steam during the week of Oct 21-25.

STI approaches support; indicators continue decline

SINGAPORE (Oct 4): The Straits Times Index is approaching its Aug 28 low of 3,056 as short- and medium-term indicators are becoming increasingly oversold. Quarterly momentum is at a one-year low. This could provide some support in due course. In the immediate term though, sentiment remains poor and quarterly momentum may test a new one year low first before rebounding.

Chart 1: STI with moving averages and momentum

Selling pressure abates but STI eases further

SINGAPORE (Sept 27): The decline, following a test by the Straits Times Index of the confluence of the 50-, 100- and 200-day moving averages at 3,216 to 3,244 range, is likely to continue. Quarterly momentum is likely to continue declining and has yet to reach the low end of its range.

Chart 1: STI with moving averages and momentum

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

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