Singapore: STI Index (.STI) factories contracted in May for the first time in 32 months
Activity in Singapore’s factories contracted in May for the first time in 32 months amid escalating trade tensions between the United States and China, joining a grim manufacturing outlook across Asia.
Singapore’s Purchasing Managers’ Index (PMI) – which measures manufacturing activity and sentiment – declined 0.4 point from the previous month to 49.9 in May, said the Singapore Institute of Purchasing and Materials Management (SIPMM) on Monday (Jun 3).
A PMI reading above 50 indicates expansion, while one below the benchmark line points to contraction.
The weak performance was attributed to slower growth in new orders, new exports, factory output, inventory and employment level, SIPMM said.
The key electronics cluster further contracted for a seventh consecutive month, slipping 0.1 point from the previous month to 49.4 in May.
“Anecdotal evidences suggest that manufacturers are increasingly concerned about the escalation of trade tensions between the world’s two largest economies,” SIPMM said.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 3,225.68.
The projected upper bound is: 3,188.16.
The projected lower bound is: 3,055.39.
The projected closing price is: 3,121.78.
A white body occurred (because prices closed higher 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 32 white candles and 18 black candles for a net of 14 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 21.3693. This is not an overbought or oversold reading. The last signal was a buy 5 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 24.78. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 19 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 -135.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 19 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed up 5.700 at 3,123.460. Volume was 12% below average (neutral) and Bollinger Bands were 36% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,158.06 3,267.73 3,178.73
Volatility: 7 13 15
Volume: 208,302,784 211,075,056 214,331,200
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.
STRAITS TIMES is currently 1.7% below its 200-period moving average and is in an downward trend. Volatility is high 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 15 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.