In the near term, short-term indicators are rising, but not overextended yet, suggesting that the STI could continue to gain ground. The overbought-resistance level for smoothed short-term RSI is at 82 to 83.
The Straits Times Index rose by 67 points in the week of Oct 14-18 to end at 3,640, the highest level since the global financial crisis. If the STI is able to clear 3,600 definitively, a significantly higher new upside target would be indicated based on a measuring objective. In this event, the new support is likely to be at 3,570.
Indicators are “on-side”. Quarterly momentum is rising, directional movement indicators are supportive and long-term momentum indicators are also rising.
