Singapore: STI Index (.STI) Market Expected To Extend Its Gains
The Singapore stock market has tracked higher in consecutive trading days, gathering more than 15 points or 0.5 percent along the way. The Straits Times Index now rests just above the 3,025-point plateau and it’s tipped to open in the green again on Thursday.
The global forecast for the Asian markets is upbeat on optimism over the political landscape in the United States. The European and U.S. markets were up and the Asian bourses figure to follow suit.
The STI finished slightly higher on Wednesday as gains from the properties were capped by weakness from the financials and industrials.
For the day, the index rose 5.47 points or 0.18 percent to finish at 3,025.03 after trading between 3,003.09 and 3,031.93. Volume was 1.63 billion shares worth 1.94 billion Singapore dollars. There were 242 decliners and 208 gainers.
The lead from Wall Street is broadly positive as stocks moved sharply higher on Wednesday, accelerating as the day progressed.
The Dow jumped 1,173.45 points or 4.53 percent to end at 27,090.86, while the NASDAQ spiked 334.00 points or 3.85 percent to 9,018.09 and the S&P 500 surged 126.75 points or 4.22 percent to 3,130.12.
The rebound on Wall Street came after former Vice President Joe Biden performed much better than expected in the Super Tuesday contests, including an upset victory over Senator Bernie Sanders in delegate-rich Texas. Biden is seen as likely to be a much more pro-business president than the very liberal Sanders.
In economic news, the Institute for Supply Management said service sector growth expanded to a one-year high in February, while payroll processor ADP said private sector employment increased by more than expected in February.
Crude oil futures drifted lower on Wednesday ahead of the meeting of OPEC and its allies in Vienna this week. West Texas Intermediate Crude oil futures for April ended down $0.40 or 0.9 percent at $46.78 a barrel.
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 3,148.35.
The projected upper bound is: 3,092.57.
The projected lower bound is: 2,935.78.
The projected closing price is: 3,014.18.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 25 black candles for a net of 2 black 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 29.1750. This is not an overbought or oversold reading. The last signal was a buy 0 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 28.77. 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 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 -85. This is not a topping or bottoming area. The last signal was a buy 0 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 8 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed down -6.760 at 3,018.270. Volume was 64% above average (neutral) and Bollinger Bands were 142% 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: 3,079.24 3,192.51 3,203.86
Volatility: 20 16 13
Volume: 344,679,552 241,539,952 233,832,704
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 5.8% 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 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 27 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.