The Straits Times Indecx continues to rise, ending the week of July 8-12 at 3,497. The definitive break above 3,450 indicates a target of 3,613. The chart pattern looks like a bull flag suggesting a short-term burst by the index.
More interesting technically, is the breakout by the S-REIT indices. The FTSE REIT Index has broken out of a minor base formation at 650 during the July 8-12 week. Immediate resistance is at current levels, at around 670. However, an initial upside of 700 is indicated by the break above 650. Since the REIT Index has formed positive divergences with both short and medium term indicators, a break above 670 could materialise after a short pause. This would give a new upside of 720.
