Singapore: STI Index (.STI) continues to strengthen but no sign of breakout

Singapore: STI Index (.STI) continues to strengthen but no sign of breakout

The Straits Times Index has staged a rebound during the week, and is now facing resistance at its flattening 200-day moving average at 3,224.

Short-term stochastics is turning up from the low end of its range and looks set to move higher. The 21-day RSI is rebounding off its equilibrium line and could strengthen. ADX is still falling, and is now at a low level of 14. The lower ADX is, the more likely the index is to stay rangebound. In addition, the DIs are neutral confirming that the STI’s movements are likely to be narrow.

The index peaked temporarily at 3,285, before retreating and this level is likely to provide resistance when prices rebound.

REITs undergo temporary correction

Although the STI strengthened on Friday Dec 13, it was not a good day for REITs which continue their correction. This appears to be taking place on a rotational basis. Earlier in the week, Mapletree Industrial Trust and Mapletree Commercial Trust experienced retreats. On Friday the 13th, Ascendas REIT succumbed to a sell-off.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,259.75.

The projected lower bound is: 3,156.70.

The projected closing price is: 3,208.22.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white 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 78.1944. This is not an overbought or oversold reading. The last signal was a buy 7 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 52.23. 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 26 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 100.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 1 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -7.960 at 3,206.090. Volume was 32% below average (neutral) and Bollinger Bands were 49% narrower than normal.

Open     High      Low     Close     Volume___
3,213.6103,219.5303,206.0903,206.090 167,870,000
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,183.22 3,191.76 3,223.99
Volatility: 10 10 12
Volume: 267,718,352 270,986,656 228,139,952

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 0.6% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .STI (mildly bearish). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 12 periods.

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