Since indicators are mixed, the upside for the current rally is likely to be at 3,230, while support remains at 3,095.
Technically, the chart of the Straits Times Index has improved, as the STI ended the week of July 18-22 up 82 points, at 3,181, taking the index above its 50-day moving average at 3,159, and the resistance level of 3,160.
Quarterly momentum, which was showing a positive divergence with the STI in the week of July 12-15, has continued to rise. On the other hand, annual momentum remains at the low end of a two year range; and the 100-day and 200-day moving averages are poised for a negative cross on July 26 at 3,230.
