Instead, short term stochastics turns down in the week of Nov 30 - Dec 4. This could cause some mild downward pressure. The STI could fall as far as its 200-day moving average but may not dip below it.
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City Developments ended the week of Nov 23-27 unchanged at $7.75, after testing a closing high of $7.97 on Nov 24. This level coincided with the still declining 200-day moving average. At the same time, quarterly momentum met with resistance at its equilibrium line. A temporary consolidation is underway, for which support remains at $7.45. A breakout should materialise in due course. If so, this counter is likely to break out of its base setting an upside of $8.44.
Singapore Airlines continues to show strength despite a minor retreat. It has broken above its 200-day moving average at $4.17, and as this moving average flattens, it is likely to provide the new support. In the meantime, the 50- and 100-day moving averages have made a positive cross, and turned up simultaneously. This signals strength, and was reinforced by a continuously strengthening quarterly momentum. In the immediate term - that is in the week of Nov 30 to Dec 4 - prices may consolidate but this is likely to be mild. Prices originally broke out of a minor base formation in Nov, setting a target of $4.50 which is now at hand. There is an altogether larger base formation, the top of which is the four-times tested resistance at the $4.50 to 4.60 range. A breakout of this higher range is likely in view rising momentum. This in turn indicates an upside of as high as $6.83.
