Interestingly, some penny stocks are no longer penny stocks. For instance, Oiltek has moved up from below 30 cents in Oct 2025 to $2.38, and is definitely far away from being from its origins as a penny stock, which listed at 23 cents.
Rotational interest will probably continue among the lower liners as they take turns to advance and inevitably retreat. Oiltek itself is likely showing signs of fatigue, and indicators may start to indicate some form of consolidation.
See also: Brent crude may break its support as STI attempts an upside breakout
The Straits Times Index retreated after testing a high of 5,014 on Apr 21, ending the week at 4,922 on Apr 24, down 75 points week on week. The index has attempted to emphatically clear 5,000 a few times, including on Apr 15, and Feb 23 when the STI reached a high of 5,041.
Indicators are still moving in different directions including the 21-day RSI and quarterly momentum are moving in different directions, and not quite synchronised. Quarterly momentum continues to fall. The 21-day RSI did not manage to sustain its upturn and has retreated again. ADX is at 18 and continues to fall, indicating that prices are still likely to move sideways.
In sum, the STI may continue to trend sideways but with an upward bias. The breakout needs to be well defined and clear and this has not materialised yet. The index has moved below the 50-day moving average, currently at 4,939. Support is at the 100-day moving average currently at 4,840. When the breakout materialises, the STI is likely to move towards JP Morgan’s earlier target (of 6,000).
