Singapore Press Holdings has indeed bottomed, and broken out of a long base formation. Just before Chinese New Year, Right Timing had indicated that SPH’s break above the top of a multi-month base at $1.25 indicated a target of $1.60. The breakout which occured on Feb 23 was accompanied by a surge in volume, and positive crosses between the 50- and 200-day moving averages. Support is at the breakout level.
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See also: Why has SATS underperformed the STI and the market? Elsewhere, REIT Index is set for higher levels
The Straits Times Index rebounded to end February at 2,949, up 69 points week-on-week, but off its high of 2,973 reached on Feb 25. Quarterly momentum remained unaffected by the rebound and continued to ease, albeit at a slower pace. The 50-day moving average which had been breached was recovered by the index. It is now at 2,919. However with the moves of the past four weeks, a support at 2,829 has been established. A break below this level would complete a minor top formation. In the meantime, directional movement indicators are pointing to weak trends. ADX is falling and the DIs are negatively placed. Resistance is at a range, between the high of 2,973 on Feb 25, and 2,990.
