Quarterly momentum eased and is now hovering around its equilibrium line which should provide support. Short-term stochastics is turning down from the top end of its range, and 21-day RSI appears poised for a downturn. ADX is falling, a sign that a consolidation phase is in force.
Annual momentum moved above its equilibrium line and has strengthened. Hence, the STI could break out of 3,407 later this year, as the 50- and 100-day moving averages have formed a positive cross at 3,259. When it does this, a new upside would be indicated.
Singapore Telecommunications ($3.54) at overbought high
The upside from an earlier break above $3.30 is almost at hand, at $3.60. As prices reached their current level of $3.54, short term indicators are at the top end of their range. Short term stochastics is turning down from the top end of its range and 21-day RSI has turned down after peaking at 75.6, a level this indicator has tested twice.
The moving averages are intact and continue rising. The chart pattern remains intact, with the stock on an uptrend. However, if prices are unable to move above $3.55 in the next 3-5 days, a consolidation could set it.
