Yahoo Finance Singapore and Hong Kong markets show latent strength
Both the Straits Times Index and the Hang Seng Index are staging temporary rebounds, with resistance-breakouts in their sights
By May 27, the Straits Times Index lost 10 points week-on-week to end at 3,230. Interestingly, the chart pattern is reflecting some latent strength. As a starting point, the STI is attempting to hold on to its peep above the 200-day moving average at 3,219. As a result of the STI’s steady sideways movement during the week of May 23-27, the 200-day moving average has actually risen by one point during the week. This may be a miniscule move, but it is an encouraging one.
The STI is still not out of the woods, as quarterly momentum remains in negative territory. The economic environment remains somewhat dour, with the yield on the 10-year Singapore Government Security (the so-called risk free rate) at 2.63% on May 27. While this is lower than the 2.92% recorded on May 9, it is still way above the 1.7% at the start of the year.
Resistance for the rebound stays at 3,300. The state of the indicators suggests that a move above this level is unlikely.
The Hang Seng Index which ended at 20,697 on May 27, is also showing signs of resilience. While it remains below the confluence of a resistance and its own 50-day moving average at 20,852, short term RSI appears poised to move above its equilibrium line. If so, the HSI could move above 20,852 which in turn could provide the impetus for a move towards the 22,268 to 22,270 area.
See Also:
Click here to stay updated with the Latest Business & Investment News in Singapore
Get in-depth insights from our expert contributors, and dive into financial and economic trends
