SINGAPORE (June 21): Here are three charts for our technical analysis this week:
STI with moving averages and momentum
Upward momentum continues as volume expanded on the continued rise in the Straits Times Index over the past five trading sessions. At 3,321, the index has moved above its flattish 50-day moving average at 3,260 and a resistance level of 3,264.
Since short term stochastics and 21-day RSI both continue to rise, the immediate upmove is likely to continue, towards 3,390. Quarterly momentum has also strengthened, and has moved above its own moving average and equilibrium line, confirming further price gains.
Annual momentum remains in negative territory, suggesting that the STI may have difficult making a new 2019 high in the near term.
Any decline should meet with support at 3,260.
CapitaLand approaches 1-year high
Prices are within a whisker of the May high of $3.61. While short term indicators are approaching the high of their range, the 50- and 100-day moving averages are likely to draw together and draw apart, in what is usually a positive signal. If so, prices may reach and breach their 1-year high. A successful breakout would indicate a substantial upside. What is absent in the short term is noticeably higher volume. Quarterly momentum has moved above its equilibrium line and its own moving average but may need to strengthen if it is to support a price breakout. Support appears at $3.40.
City Developments breaks above twice tested resistance
Prices have broke above the twice tested resistance at the $9.20 to $9.30 range. If quarterly momentum is able to gain strength, the upside could be as high as $10.20. Volume expanded marginally, but may need to expand more noticeably if the upside is to be met. Support is at the breakout level.
