STi remains in consolidation mode
SINGAPORE (May 19): The Straits Times Index eased by about 40 points during the week to close at 3,529. The confluence of the 50-and 100-day moving averages at 3,501 should provide support.
Short-term stochastics is at the low end of its range and could turn up towards the end of the week. If the STI is able to hold at its moving averages, it could rebound towards the end of the month.
ADX continues to fall and is at 14, an indication that the trend remains sideways for the time being. Quarterly momentum remains intact after it surged last week.
Resistance stays at the twice tested 3,609 level. The moving averages remain intact and are likely to continue acting as support lines.
City Developments weakens
Prices have fallen below the 200-day moving average at $12.26, with the 50- and 100-day moving averages set to turn down at $12.70. Support appears at $11.05. Quarterly momentum is in negative territory and not quite ready for form a positive divergent.
