Technically, the STI’s 50- and 100-day moving averages had drawn together during the first week of August and drew apart in subsequent weeks. This is a positive signal. In the meantime, quarterly momentum continues to rise, and ADX is turning up from neutral levels as DIs turn positive.
Interestingly, the FTSE REIT Index has just broken out of a base formation, setting an upside of 721. The index is unlikely to surge, but it should be able to move gradually higher as the year wears on.
The Straits Times Index (STI) rose a further 54 points during the week of Aug 26-30, taking the gains in the past three weeks to 194 points. As a result, the index has moved above the breakdown level of 3,420.
