SEE:The STI beats us but we beat the rest
Unlike OUE, which peaked on April 14 and has just covered an exhaustion gap causing it to drift gently lower, SPH’s next moves could be more volatile before calming down.
The main Straits Times Index barometer managed to bounce off its still rising 50-day moving average currently at 3,134. On May 5, the STI moved to an intra-day low of 3,140 before rebounding, ending the week at 3,200.
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Support had appeared at 3,150, the bottom of a sideways range, and this managed to stop the decline. Overall though, the index looks like it may remain within this sideways range. The top of the range is at around 3,220 to 3,222.
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Technically, the STI’s quarterly momentum is struggling as it attempts to stabilise in mid-range. Short term indicators bounced temporarily and both stochastics and 21-day RSI appear to be trending lower. ADX continues to fall, and this is reflected in the STI’s sideways range. The DIs are currently neutral.
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These indicators suggest that the STI may not be able to stage a clear break above the 3,220 to 3,222 level in the near term despite its recent rebound. The original break above the narrow 3,071 to 3,118 range in the week of Mar 15-19 still remains valid as does the upside of 3,368 to 3,377 but this may take a longer time frame to achieve.
