Singapore: STI Index (.STI) Asia Mostly Lower Ahead of U.S.-China Deal

Singapore: STI Index (.STI) Asia Mostly Lower Ahead of U.S.-China Deal

Market sentiment dragged in Asia on Wednesday ahead of the U.S. and China signing a phase one trade deal.

In Japan, the Nikkei 225 index faded 108.59 points, or 0.5%, to 23,916.58.

The Japanese yen changed hands at 109.92 per U.S. dollar, strengthening from around 110.01.

In Hong Kong, the Hang Seng index retreated 111.55 points, or 0.4%, to 28,773.59

Australian markets bucked the downward trend and rose, with most sectors finishing up.

The Australian dollar was at 0.6899, falling back from the 0.69 level a day before.

CHINA

In Shanghai, the CSI 300 dropped 23.16 points, or 0.6%, to 4,166.73.

Officials from the U.S. and China are expected to sign the trade agreement on Wednesday after the two countries last month agreed to the deal in principle, where Washington said it would cancel or reduce some tariffs in exchange for China purchasing more American products and addressing U.S. concerns on areas of technology and financial services.

The deal is expected to include a commitment from China to buy about $200 billion of U.S. goods over two years, which includes about $80 billion in manufactured goods, $53 billion in energy, $32 billion in agriculture and $35 billion in services.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 3,214.41.

The projected upper bound is: 3,304.97.

The projected lower bound is: 3,208.76.

The projected closing price is: 3,256.87.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 26 black candles for a net of 4 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 80.5617. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 12 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 59.26. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 48 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 101.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 23 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -13.560 at 3,256.980. Volume was 6% above average (neutral) and Bollinger Bands were 43% narrower than normal.

Open     High      Low     Close     Volume___
3,266.5403,276.0003,252.0203,256.980 245,144,400
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 3,248.54 3,221.26 3,225.51
Volatility: 10 9 12
Volume: 212,349,376 254,930,608 224,600,576

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

STRAITS TIMES is currently 1.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .STI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 13 periods.

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