Index components continue to move gradually higher on a rotational basis. DBS Group Holdings broke out of a sideways range on the first trading day of 2021. It is now consolidating its gains. Elsewhere, CapitaLand, currently at $3.47, moved above a several times tested resistance area at $3.20 to $3.23 in Dec, just as the 50- and 200-day moving averages made a positive cross. This coupled with rising 50- and 100-day moving averages, and volume expansion triggered at breakout on Dec 18, setting an upside of $3.90. The developer is likely to move progressively upwards, in a series of higher highs and higher lows. Support is raised to 3.40.
CapitaLand Integrated Commercial Trust has regained its mojo following a short sideways consolidation. It could be ready to move above the several-times tested $2.28-$2.29 level. Quarterly momentum has strenghthened, and volume expanded on white candle days. Short term indicators are largely neutral. If momentum can stay resilient, and volume remains at current levels, prices should be able to breakout setting an upside target. In the immedate term the range could be tight, with support at $2.25.
On Jan 12, Frasers Logistics & Commercial Trust broke out of a three-month sideways range at $1.46, and on Jan 14, it was at a new all-time high of $1.52. The breakout level indicates a target of $1.75. Indicators are supportive of further advances. The breakout was accompanied by a notable expansion in volume on Jan 13. This took place as the 50- and 100-day moving averages made a positive cross. Quarterly momentum had moved above its equilibrium line in Dec, hovering around its equilibrium line before starting its ascent on Dec 29. Support in the event of a retreat is at the breakout level.
Roundophobic/ roundophilic numbers such as 3,000 are but a pyschological barrier. The Straits Times Index closed above this on Jan 14. However, the index had already moved above a resistance area of 2,795 to 2,900, indicating an initial upside of 3,282 which was the Jan 2020 high. This level is probably a stronger resistance than 3,000. Short term indicators are supportive of the breakout. Quarterly momentum had been resilient through Dec and strengthened through the initial trading sessions in Jan. Add to that a surge in volume, and the breakout appears to be good. The moving averages stayed positively placed. Support is raised to the breakout level.
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