Singapore: STI Index (.STI) equities got the fourth quarter off to a flying start

Singapore: STI Index (.STI) equities got the fourth quarter off to a flying start

It would be an exaggeration to say Singapore equities got the fourth quarter off to a flying start, but the local market did register one of the region’s best showings yesterday.

The Straits Times Index (STI) extended early gains to end at 3,146.03, up 26.04 points, or 0.8 per cent, on a day of light trade.

Elsewhere, Australia, Japan, Malaysia and South Korea posted gains while markets in China are closed from yesterday to Monday for the nation’s week-long 70th anniversary celebrations. Hong Kong was also closed but resumes trading today.

Trading volumes here clocked in at 596.61 million shares worth $720.36 million, with gainers beating losers 206 to 140. Yangzijiang Shipbuilding was the STI’s most active, with 30.5 million shares traded as it closed up 4.2 per cent at $1.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,205.41.

The projected lower bound is: 3,077.37.

The projected closing price is: 3,141.39.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.

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 45.2197. This is not an overbought or oversold reading. The last signal was a buy 1 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 47.99. 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 buy 22 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 -44. This is not a topping or bottoming area. The last signal was a buy 0 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 5 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 26.040 at 3,146.030. Volume was 100% below average (consolidating) and Bollinger Bands were 45% narrower than normal.

Open     High      Low     Close     Volume___
3,130.1103,156.6303,127.4603,146.030 0
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,142.73 3,179.48 3,219.56
Volatility: 9 13 13
Volume: 177,048,352 219,172,960 209,397,776

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 gapped up today (bullish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
STRAITS TIMES is currently 2.3% below its 200-period moving average and is in an upward trend. Volatility is low 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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