A move above 25,423 would enable the HSI to nudge higher, towards the 26,000 psychological resistance.
See also: STI falls below 200-day moving average as HSI hangs by a thread
The Straits Times Index rose a further 61 points in the week of Oct 11-15 to end at 3,178. The STI has gained 122 points in the first two weeks of Oct. In the process, it has regained its 50-, 100- and 200-day moving averages. Its immediate resistance is at current levels, at 3,180. It may need to get above this level accompanied by volume expansion to indicate an upside objective.
Inflation - which is usually positive for asset prices including equities - may be the reason why global markets headed higher. The STI itself was spurred higher by Jardine group companies such as Jardine Matheson Holdings and Hongkong Land Holdings, and Keppel Corp. As a result, the STI managed to close at the highest level since early August.
