Hence the chart pattern of the STI continues to show latent strength, with the index holding on to its move above the 200-day moving average for five consecutive trading sessions.
Further out in the coming weeks though, market movements may revert to being volatile. The 50- and 100-day moving averages currently at 3,307 and 3,311 respectively - are showing signs of a negative cross. Hence, support should be kept tight at 3,221. If the STI moves below this level, trading patterns are likely to turn volatile.
Much depends on whether quarterly momentum - which has risen towards its equilibrium line - can breakout above this level. At present, market volume is moderate and probably insufficient to trigger a breakout.
