Shares in Singapore’s SIA Engineering Company Ltd look overbought at current levels, technical charts suggest.
The stock is trading near its resistance level of S$ 4.10 and could reverse from here.
The stock’s Relative Strength Index, a momentum oscillator, is at 75. A level above 70 is considered overbought.
Average Directional Index, an indicator that measures the strength of a trend, is at 53. A reading above 50 generally indicates a stock is overbought.
However, a break above S$ 4.10 levels could push the stock higher to around S$ 4.40 levels.
At Wedneday’s close of S$4.05, the stock is near its mean price target of S$4.23.
Year-to-date, it is up over 19 percent compared to an almost-13 percent rise in the benchmark index.
For a technical chart: link.reuters.com/cab27s
Reporting by Rajesh Chandnani; editing by Sunil Nair