Increasingly, corporate restructurings are a trigger for investors to reassess quality stocks. These fundamental turns are reflected in price action. For instance, although Singapore Airlines’ corporate developments appear to be negative for investors, a lack of sellers has triggered a price rise. Resistance appears at $5.25. Singapore Press Holdings is another example of restructuring. The jury is out as to whether this is good for investors. Technically, prices have covered the gap between $1.61 and $1.78. Resistance/breakout is at $1.81.
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Sembcorp Industries is studying ways to turn green. Its share price is testing its one year high at current levels. Short term stochastics has turned up from the bottom of its range. ADX is turning up from an ebb, and the DIs have made a positive cross. Quarterly momentum continues to rise. These indicators should lift prices. A successful break above $2.21 indicates a short term upside of $2.52.
The STI has cleared resistance at 3,150 and regained its 50-day moving average at 3,165. The rebound is supported by an upturn and likely upmove by stochastics which bounced off the bottom of its range. The 21-day RSI rebounded from 37, which is near the low end of its range. Quarterly momentum has also turned up.
SEE:Analysts raise their target prices for Sembcorp Industries on its strategic shift to renewables
See also: STI’s upside from breakout remains valid as risk-free rates fade, but stay watchful for FOMC
These short term indicators are aiding the STI’s rebound. Since ADX continues to decline, an uptrend may not develop just yet. Instead, the index is likely to encounter resistance at 3,220.
