The banks have lagged somewhat as stocks such as Singapore Airlines (SGX:C6L
) and Keppel Corp underpinned the upmove of the past five sessions.
The Straits Times Index did indeed start a rebound during the week of June 12-16 which gathered steam mid-week, gaining 74 points week-on-week to end at 3,260 on June 16. Since May 31, the STI has gained some 102 points.
The move that took the STI from 3,158 to 3,260 may well have legs. ADX is at 17 after turning up, and this level is relatively modest. Short term RSI is rising following its positive divergence, but has not reached its overbought line yet. Hence the STI may attempt to move towards the 3,319 to 3,320 level before a correction sets in.
