Since quarterly momentum has turned up sharply from its equilibrium line, moving above its own moving average, the STI has sufficient steam to rise further. The 21-day RSI is rising moderately as well. All these indicators suggest that the STI has more upside.
Resistance stays at around 3,350. The year’s high was at 3,354. A break above this level provides the impetus for a test of 3,500.
Annual momentum has recovered and 24-month momentum continues its upwards trend. All in, the STI should continue its rally.
See also: STI may retreat on strong overbought pressures but REIT Index may break out
Offshore stocks get back their bounce
Both Keppel Corp and Sembcorp Marine have seen their 50-, 100-, and 200-day moving averages converge and turn up simultaneously. Their quarterly momentum indicators have also turned up and broken above their equilibrium lines together.
For Sembcorp Marine, the break above $1.80 indicates an upside of $2.10.
Keppel Corp looks set to break above its current resistance level to test $8.10.
See also: Can the STI hold above 4,000?
Keppel Corp ($7.07) set to break out
Sembcorp Marine ($1.88) target $2.10
