Singapore: STI Index (.STI) registers worst session in 3 weeks

Singapore: STI Index (.STI) registers worst session in 3 weeks

Singapore stocks marked their worst session in three weeks yesterday, as increased political turmoil in the United States and trade tensions rattled investors.

The Straits Times Index (STI) ended in the red, declining 0.6 per cent at the opening of trading before slipping further during the day to close at 3,125.82, down 0.94 per cent or 29.64 points.

“The benchmark STI has been drifting in ebbs and flows off foreign news this week, with overall sentiment leaning towards a cautious mode,” said Ms Margaret Yang, an analyst at CMC Markets in Singapore. Developments in the US-China trade negotiations, US President Donald Trump’s impeachment inquiry and a softening global growth outlook are going to dominate trading for the rest of the week, Ms Yang added.

Singapore’s largest lender DBS Group dropped 1.24 per cent to close at $24.73. OCBC Bank fell 1.28 per cent to $10.77, while United Overseas Bank finished at $25.38, shedding 0.7 per cent.

Declines also came from mainboard-listed Sevak and Mirach Energy, which is on the Singapore Exchange’s watch list.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3,184.57.

The projected lower bound is: 3,057.68.

The projected closing price is: 3,121.13.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 1 white candles and 9 black candles for a net of 8 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 17.2038. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 41.50. 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 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 -124.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -0.010 at 3,125.810. Volume was 14% below average (neutral) and Bollinger Bands were 33% narrower than normal.

Open     High      Low     Close     Volume___
3,130.5003,134.9103,122.6203,125.810 186,638,688
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,163.41 3,193.73 3,218.96
Volatility: 8 13 13
Volume: 191,230,080 223,400,528 210,702,128

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 2.9% 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 10 periods.

#shayne heffernan#Singapore#Singapore market#sti#STI Index#sti market price#trading