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: Straits Times Index shows signs of decoupling from the US by outperforming
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.
