Singapore: STI Index (.STI) Stock Market May Take Further Damage

Singapore: STI Index (.STI) Stock Market May Take Further Damage

The Singapore stock market has moved lower in two straight sessions, giving away more than 35 points or 1.1 percent along the way. The Straits Times Index now rests just above the 3,245-point plateau and it’s expected to open under pressure again on Wednesday.

The global forecast for the Asian markets is soft on concerns regarding the coronavirus outbreak in China. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The STI finished sharply lower on Tuesday following losses from the financial shares, property stocks and industrial issues.

For the day, the index sank 32.92 points or 1.00 percent to finish at 3,247.17 after trading between 3,232.99 and 3,275.15. Volume was 2.67 billion shares worth 1.11 billion Singapore dollars. There were 350 decliners and 138 gainers.

Adding to the negative sentiment, the International Monetary Fund downwardly revised its forecast for global economic outlook on bigger than expected slowdowns in emerging markets like India.

Crude oil prices edged lower on Tuesday after the Energy Information Administration (EIA) said the sharp climb in U.S. oil production outweighed concerns about supply disruptions in Libya. West Texas Intermediate Crude oil futures for March, slipped $0.20 or 0.3 percent to $58.38 a barrel.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 3,221.22.

The projected upper bound is: 3,299.38.

The projected lower bound is: 3,209.06.

The projected closing price is: 3,254.22.

Candlesticks

A white body occurred (because prices closed higher 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 22 white candles and 26 black candles for a net of 4 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 47.2732. This is not an overbought or oversold reading. The last signal was a sell 1 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 53.97. 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 53 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 -15. This is not a topping or bottoming area. The last signal was a sell 1 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 0 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 6.760 at 3,253.930. Volume was 13% below average (neutral) and Bollinger Bands were 33% narrower than normal.

Open     High      Low     Close     Volume___
3,242.6003,258.9603,240.1703,253.930 202,913,280
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 3,262.22 3,222.11 3,224.17
Volatility: 9 9 12
Volume: 227,538,992 249,160,192 223,648,512

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% above 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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