Singapore: STI Index (.STI) Singapore’s Leader Says Economic Rebound Depends on Global Calm

Singapore: STI Index (.STI) Singapore’s Leader Says Economic Rebound Depends on Global Calm

Singapore Prime Minister Lee Hsien Loong said the city state’s economy could improve in 2020 only if any number of global risks don’t materialize, particularly emanating from the U.S.

Singapore is poised to rebound from 2019, when a potent mix of trade-war disruption and an electronics-cycle slowdown pulled growth in the export-reliant economy to its weakest level in a decade. There have been some recent signs of recovery: the December purchasing managers index signaled an expansion in factory output after seven straight months of contraction, while exports gained for the first time in 10 months.

Singapore’s position among the world’s most trade-reliant economies has left it vulnerable to each twist and turn of the trade war, but Southeast Asia more broadly has seen some benefits as businesses shift their supply chains. Vietnam has been one of the region’s biggest gainers.

Singapore’s gains from these supply-chain moves probably won’t be significant, Lee said, given the limited overlap with China on the kinds of industries that are shifting away from there. However, Singapore sees a unique role for itself as China’s presence in the region continues to grow.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3,198.81.

The projected lower bound is: 3,105.78.

The projected closing price is: 3,152.29.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 22 white candles and 25 black candles for a net of 3 black 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 24.0809. This is not an overbought or oversold reading. The last signal was a buy 3 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 30.04. 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 60 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 -138.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 7 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -16.950 at 3,153.730. Volume was 20% above average (neutral) and Bollinger Bands were 29% wider than normal.

Open     High      Low     Close     Volume___
3,173.3903,183.4603,144.3303,153.730 283,957,184
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,218.40 3,217.85 3,219.31
Volatility: 12 9 12
Volume: 235,434,224 243,638,192 225,613,680

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 2.0% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 3 periods.

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