Short term indicators are near the top end of their range and a short term correction is likely to materialise in the next few sessions. However, this is unlikely to derail the STI’s uptrend as annual and 24-month momentum indicators continue to rise.
Offshore plays set for higher levels
Sembcorp Marine ($1.85) should gather momentum
Price should be able to move higher from current levels. The break above $1.80 indicates an upside of $2.10.
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This is confirmed by the series of positive crosses by the 50-, 100- and 200-day moving averages. Short term stochastics is a trifle weak. However, quarterly momentum remains intact and is likely to resume its uptrend.
Keppel Corp ($7.46) uptrend intact
Short term indicators are at the high end of their range and a temporary pull-back should materialise shortly.
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During this period, the uptrend should remain intact. Support is raised to $7.20. The eventual upside stays at $8.10.
