The Straits Times Index inched painfully higher week-on-week in the week of Nov 15-19, gaining three points. However, that places the index above a breakout level at 3,200, and above its moving averages, with the highest of them, the 50-day moving average at 3,151. The break above 3,200 indicates an upside of 3,345. As of Nov 19, quarterly momentum is on an uptrend, and supportive of a firmer phase ahead. Although the DIs are positively placed, ADX is falling, and this may stymie gains. Support is at the breakout level.
See: STI stays resilient and could meet its upside objective; HSI attempts rebound
The Hang Seng Index ended the week of Nov 15-19 at 25,049, down 278 points, and below its 50-day moving average at 25,172. The move above the 50-day moving average in the week of Nov 8-12 is likely to have been a whipsaw. The HSI’s quarterly momentum remains entrenched beneath its equilibrium line and looks like it plans to retreat. ADX is down to 11, a low reading indicating a lack of trend and pointing to a sideways range. Initial support is now at 24,763, the Oct low, failing which the twice tested 23,900 level provides support. Resistance appears at 26,100.
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