ST Engg is one of the laggard STI component index stocks as STI rallied past the 3,000 level. It appears to be trading in an ascending triangle formation with $3.35 as the breaking out level of the ascending triangle formation. A breakout will potentially lead to a first level target price of $3.60. Apart from the price level being trapped in an ascending triangle formation, the RSI and Stochastic indicators are also appeared to be trapped in an ascending triangle formation. The expansion in the long-term GMMA group of lines indicating the strength in the uptrend and with the 3d EMA line onset to cut up to the 5d EMA line, this could create a short-term bullishness to the price level. The bullish harami candlestick formation created during 15th and 16th April further supporting a potential short-term upside. On the ADX chart, the DI+ appears to be tried to cut down to the DI- and create a negative crossover but with the ADX signal at below 20 level, the negative crossover lacks the strength.
A move above the $3.35 price level will trigger an ascending triangle breakout whereas a drop below $3.24 could void the formation of the ascending triangle.
