Singapore: STI Index (.STI) Stock Market May Extend Its Losses

Singapore: STI Index (.STI) Stock Market May Extend Its Losses

The Singapore stock market has moved lower in consecutive trading days, surrendering almost 30 points or 0.9 percent along the way. The Straits Times Index now rests just beneath the 3,230-point plateau and it’s tipped to open in the red again on Thursday.

The global forecast is soft thanks to ongoing melodrama regarding a possible trade agreement between the United States and China. The European and U.S. markets were down and the Asian bourses are tipped to follow suit.

The STI finished modestly lower on Wednesday following losses from the property stocks and financial shares.

For the day, the index slipped 9.09 points or 0.28 percent to finish at 3,229.78 after trading between 3,219.27 and 3,236.18. Volume was 1.20 billion shares worth 1.10 billion Singapore dollars. There were 262 decliners and 145 gainers.

Among the actives, Golden Agri-Resources surged 4.17 percent, while Yangzijiang Shipbuilding plummeted 3.77 percent, SingTel soared 2.51 percent, CapitaLand Mall Trust plunged 1.97 percent, United Overseas Bank tumbled 1.05 percent, CapitaLand Commercial Trust skidded 1.00 percent, DBS Group retreated 0.98 percent, Wilmar International dropped 0.72 percent, Ascendas REIT sank 0.68 percent, Thai Beverage climbed 0.55 percent, CapitaLand shed 0.54 percent, Genting Singapore advanced 0.53 percent, Singapore Exchange and Singapore Press Holdings both added 0.45 percent, SembCorp Industries lost 0.44 percent, Mapletree Commercial Trust fell 0.43 percent, Singapore Technologies Engineering rose 0.24 percent and Keppel Corp and Oversea-Chinese Banking Corporation were unchanged.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 3,201.05.

The projected upper bound is: 3,246.57.

The projected lower bound is: 3,137.74.

The projected closing price is: 3,192.16.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 22 white candles and 27 black candles for a net of 5 black candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 3 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern even more bearish.

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 18.9880. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 8 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 45.45. 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 9 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 -232.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 5 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -37.570 at 3,192.210. Volume was 51% above average (neutral) and Bollinger Bands were 37% narrower than normal.

Open     High      Low     Close     Volume___
3,201.0503,210.0903,189.6103,192.210 337,898,112
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,240.22 3,173.98 3,228.40
Volatility: 12 11 12
Volume: 281,153,344 218,239,792 217,886,528

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
STRAITS TIMES is currently 1.1% below its 200-period moving average and is in an upward 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 bullish on .STI and have had this outlook for the last 18 periods.

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