Singapore: STI Index (.STI) global forecast is upbeat

Singapore: STI Index (.STI) global forecast is upbeat

The Singapore stock market on Wednesday ended the two-day slide in which it had stumbled more than 30 points or 1 percent. The Straits Times Index now rests just above the 3,170-point plateau and it’s called higher again on Thursday.

The global forecast for the Asian markets is upbeat after the FOMC’s decision to leave interest rates unchanged. The European and U.S. markets were up and the Asian markets figure to follow that lead.

The STI finished modestly higher on Wednesday following gains from the financials and mixed performances from the plantations and properties.

For the day, the index advanced 10.01 points or 0.32 percent to finish at 3,172.90 after trading between 3,159.50 and 3,187.33. Volume was 920.57 million shares worth 1.02 billion Singapore dollars. There were 224 gainers and 152 decliners.

The lead from Wall Street is positive, mostly in response to the Federal Reserve’s latest monetary policy announcement.

The Dow added 29.58 points or 0.11 percent to finish at 27,911.30, while the NASDAQ gained 37.87 points or 0.44 percent to 8,654.05 and the S&P rose 9.11 points or 0.29 percent to 3,141.63.

The higher close on Wall Street came after the Fed decided to leave interest rates unchanged following three straight rate cuts. The decision was widely expected, although the Fed’s projections showed a majority of meeting participants now expect interest rates to remain on hold throughout 2020.

In its accompanying statement, the Fed said the current stance of monetary policy is appropriate to support a sustained economic expansion, strong labor market conditions, and inflation near its symmetric 2 percent objective.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,248.50.

The projected lower bound is: 3,145.11.

The projected closing price is: 3,196.80.

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 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 47.2428. 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 49.85. 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 24 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 20. This is not a topping or bottoming area. The last signal was a buy 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 20 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 21.770 at 3,194.670. Volume was 6% above average (neutral) and Bollinger Bands were 39% narrower than normal.

Open     High      Low     Close     Volume___
3,188.9903,206.1903,184.1803,194.670 263,500,064
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,179.39 3,186.92 3,224.24
Volatility: 9 10 12
Volume: 275,409,952 268,225,680 227,815,264

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 0.9% 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 volume flowing into and out of .STI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 10 periods.

#shayne heffernan#Singapore#Singapore market#singapore technical analysis#sti#sti forecast#STI Index#sti market price#sti technical analysis#trading