This suggests that the breakout is likely to be sustained despite both quarterly and annual momentum looking a trifle fatigued. This is because the directional indicators on the weekly chart are quarterly indicators and they tend to indicate a change of direction on a quarterly basis.
Since the Straits Times Index (STI) touched 4,000 (+/-) on March 28, this level has provided resistance. As such, 4,000 should provide support during the pull-back move after a breakout.
On the weekly chart, directional movement remains low, but weekly directional indicators (DI) have managed to turn neutral after staying in negative mode since the beginning of March.
