Much depends on the 1Q2024 results of DBS Group Holdings which reports on May 2. If it betters the analysts’ estimates of around $2.465 billion would trigger a further rally in the market.
During the week, the Straits Times Index broke out of its thrice tested resistance at the 3,250-3,255 range setting an upside of 3,360. Usually, breakouts of this ilk are followed by temporary consolidations or retreats before prices continue their uptrend. A word of caution: there is some negative divergence displayed by short term RSI and the STI. Additionally, quarterly momentum, while still on an uptrend, has turned down temporarily.
These oscillators suggest some consolidation ahead of any further upmove. Week-on-week, the index had gained 100 points to end at 3,280. During the week, the STI touched a closing high of 3,293 as it formed a minor top on the candlestick chart. Any further retreat should find support at 3,250 at which level the breakout remains good and the upside remains valid.
