The Straits Times Index rose by 49 points week-on-week to end at 4,948 on Apr 2. In doing so, the index has regained its 50-day moving average at 4,931. The main support is at the 100-day moving average at 4,770. Currently, 21-day RSI and directional movement indicators remain neutral. ADX has fallen to 17, a reading that confirms a sideways consolidation. The STI likely to continue its consolidation for another two weeks.
Oiltek International rose by 31% during the week March 30- Apr 2, to a new all-time high of $1.55, driving 21-day RSI to an all-time high of 87, which is an overbought high. Right Timing had an upside of $1.65 for Oiltek, and this may be tested before a correction sets in. The movement in the past five sessions is an accelerated advance which may have difficulty sustaining.
The watch stocks attracted some buying interest. Of the two watch stocks, Cortina Holdings and The Hour Glass, the latter looks more interesting as it is more liquid than the former. Prices rose by 8.7% on Apr 2 to $2.48. A break above a sideways range would materialise if prices moved above $2.50, setting an upside of $2.80. The short and medium term indicators appear to be supportive. Quarterly momentum and directional movement indicators have turned positive, the 50- and 100-day moving averages are poised to move apart after drawing together. These indicators taken together may be able to support a breakout and the upside target.
