Singapore: STI Index (.STI) continues to drift sideways

Singapore: STI Index (.STI) continues to drift sideways

The Straits Times Index peaked temporarily at 3,285, before retreating. At its current level of 3,238, the index has stayed above the 200-day moving average at 3,227 and the 100-day moving average at 3,208.

Quarterly momentum is intact and in rising mode. The 50-day moving average continues its ascend. These indicators suggest that the main upswing is probably intact and the retreat should be temporary.

Prices are testing the still rising 200-day moving average at $2.86. Since volume picked up during the corrective phase which started on Nov 4, prices may continue to weaken over some weeks. A break below $2.86 would cause prices to move towards $2.77 or so, with more substantial support appearing at $2.63.

Quarterly momentum is weak. Short term indicators would be sufficiently oversold to trigger a bounce only later in the week. Any rebound during this period is likely to be temporary with resistance appearing at $2.97.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 3,199.90.

The projected upper bound is: 3,295.35.

The projected lower bound is: 3,186.15.

The projected closing price is: 3,240.75.

Candlesticks

A white body occurred (because prices closed higher 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 23 white candles and 26 black candles for a net of 3 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 20.9099. This is not an overbought or oversold reading. The last signal was a sell 4 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 57.67. 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 5 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 -15. This is not a topping or bottoming area. 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 sell 1 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 7.010 at 3,238.860. Volume was 29% above average (neutral) and Bollinger Bands were 5% narrower than normal.

Open High Low Close Volume___
3,238.6003,243.1503,228.5803,238.860 284,082,208

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 3,251.61 3,169.61 3,227.62
Volatility: 11 11 12
Volume: 274,122,528 213,018,112 216,023,920

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 0.3% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into .STI (mildly bullish). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 14 periods.

#shayne heffernan#Singapore#Singapore market#sti#STI Index#sti market price#trading