Singapore: STI Index (.STI) Stock Market May Test Support At 3,200 Points

Singapore: STI Index (.STI) Stock Market May Test Support At 3,200 Points

The Singapore stock market on Thursday snapped the two-day winning streak in which it had advanced more than 60 points or 1.9 percent. The Straits Times Index now rests just above the 3,220-point plateau and it’s expected to open under pressure again on Friday.

The global forecast for the Asian markets is soft on renewed concerns about the spread of the coronavirus. The European and U.S. markets were down and the Asian markets figure to follow suit.

The STI finished slightly lower on Thursday as losses from the industrials and plantations were mitigated by support from the financials.

For the day, the index dipped 3.28 points or 0.10 percent to finish at 3,220.09 after trading between 3,211.87 and 3,232.90. Volume was 1.49 billion shares worth 1.19 billion Singapore dollars. There were 205 gainers and 204 decliners.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 3,204.11.

The projected upper bound is: 3,259.56.

The projected lower bound is: 3,135.05.

The projected closing price is: 3,197.30.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 22 black candles for a net of 3 white 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 4 falling windows in the last 50 candles–this makes the current falling window even more 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 67.5347. This is not an overbought or oversold reading. The last signal was a sell 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 47.82. 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 10 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 29. 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 buy 4 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -16.370 at 3,196.630. Volume was 18% below average (neutral) and Bollinger Bands were 19% wider than normal.

Open     High      Low     Close     Volume___
3,203.3803,203.6203,191.1503,196.630 198,579,808
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,202.50 3,218.38 3,209.94
Volatility: 17 12 12
Volume: 246,920,176 209,786,288 227,195,216

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 0.4% 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 15 periods.

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