The STI is among Asia’s best performing markets, but remains behind the US markets.
Technically, the Straits Times Index remains in its uptrend. It rose by 14 points week-on-week during the week of Dec 9-13, ending at 3,810, as the index re-tests a resistance area at current levels. On Dec 5, the STI made a new six year high of 3,822. The previous occasion the STI was this high was in 2018, when it tested 3,876.
Although short-term indicators show a series of negative divergences with the STI, this is not a sell signal as the trend of these short-term indicators is sideways and they have not fallen below important supports yet. Annual momentum is intact, ADX is up and the DIs remain positively placed. Quarterly momentum has eased, but it has not broken below any support. Against this background, the STI may attempt to break above its current resistance area if volume expands.
