Short-term stochastics is rising, the 21-day RSI is on an upward trajectory, and ADX has yet to turn up to coincide with positively placed DIs. In sum, there is further upside, but a significant upmove may not materialise as annual momentum continues to languish.
Short-term indicators continue to rise
Just to recap, on Sept 11, the index made a low of 3,102, and it subsequenty rebounded. In the past three weeks, the STI has gained more than 150 points. Further gains are possible, but they may not match the gains recorded in Sept.
City Developments ($9.11) experiences positive divergence
Positive divergences between this bellwether stock and its quarterly momentum are evident. It suggests that the downside is limited, and prices should be able to stage a rebound which is likely to be tentative initially, but could gather pace at a later stage. Support has been established at $8.52. Resistance appears initially at $9.50, a level which implies prices have broken above the delcining 50-day moving average.
