Technically, a minor negative divergence has appeared between HKL’s share price and its 21-day RSI. On the weekly chart, annual momentum and the 13-week RSI are at 10-year highs. This does not mean that prices can’t go higher. They probably can. However, in the immediate term, on the weekly candlestick chart, a large shadow has appeared on top of a small body, which may imply that prices have run ahead of themselves. The top of the shadow is at US$7.45. Support for HKL is at US$6.
The uptrend of the Straits Times Index has started to resemble a staircase, which implies that the uptrend can persist for some time. However, immediate moves could be lower as the index takes a breather. Support is at 4,240, a tad below the rising 50-day moving average at 4,247, and the breakout level of the ascending triangle at 4,280. The breakout indicates an upside of 4,500 which remains valid.
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The FTSE REIT Index almost met its upside of 720 and it too has retreated. Support appears at its rising 50-day moving average at 681. The REIT Index ended the week of Sept 15-19 at 698.
The yield on the 10-year Singapore Government Securities has risen from 1.77% on Sept 18 to 1.80% on Sept 19. This may be just a blip. However, the global tech giants have announced large investments in the US, eg the US$500 billion Stargate project, and in the past week of Sept 15-19, talk of investing GBP155 billion in the UK has emerged. Whether this drains liquidity from the local market remains to be seen.
