STI to stay resilient, taking a cue from overseas
The Straits Times Index is attempting to strengthen in the week of Oct 12-16 but its ability to do so could continue to be curbed by volatility in the US markets. Week-on-week, the STI is up 36 points. Quarterly momentum, however, did not move much and remains below its own moving average and resistance level. In addition, the volume remained low.
On the other hand, stochastics continues to rise, as does 21-day RSI. These indicators suggest that the index is likely to move higher in the early part of the week, towards the 100-day moving average at 2,574.
See also: STI may retreat on strong overbought pressures but REIT Index may break out
ADX is falling and is down to 16. While levels have been lower, as ADX moves into the teens, market movements are likely to be sideways, within narrow ranges, and that looks increasingly likely to be a feature of this market.
