Although quarterly momentum is rebounding off a low level, there are no signs of a positive divergence, hence, the base formation has not completed. The result could be the index inching higher, to whipsaw the moving average. The 100- and 200-day moving averages have made a negative cross at 3,431.
Short-term stochastics and 21-day RSI are likely to continue rising. RSI is now at its equilibrium line. If the index moves above the 50-day moving average, resistance appears next at 3,375.
Annual momentum has fallen to its equilibrium line where it could find temporary support. Overall though, long-term momentum has turned down and this is likely to limit the upside, and cause the index to resume its decline in a few weeks.
DBS Group Holdings ($27.06) challenges resistance
Prices are at the confluence of the 50-and 100-day moving averages which appear poised for a negative cross at $27.54.
Since short-term indicators coud continue rising, and quarterly momentum is rebounding off a two year low, prices are likely to rise to at least $27.54. Both annual momentum and two-year momentum have turned down and this could limit the upside.
