Quarterly momentum remained intact throughout the short term consolidation. ADX and directional movement indicators are neutral, and could turn positive. As a result, the break above 3,150 in early January, and the retreat at the end of January has confirmed this area as a support level. Support stays at the breakout level. The upside from the breakout of 3,330 remains valid at this juncture.
The Straits Times Index rallied to touch its gradually declining 200-day moving average, currently at 3,191, before ending the week at 3,179 on Feb 2, up 20 points week-on-week.
Although the STI dipped below the confluence of a support area and the 50-day and 100-day moving averages at 3,140 and 3,147 respectively briefly, the index manage to rebound off this area, establishing it as a support.
