Singapore: STI Index (.STI) Trade worries and growth concerns continued to fester

Singapore: STI Index (.STI) Trade worries and growth concerns continued to fester

Trade worries and growth concerns continued to fester after Wall Street returned from the Memorial Day break, which made for a sea of red across Asian equity markets, with Singapore not spared either.

The Straits Times Index (STI) was trading at 3,159.63, down 5.69 points or 0.2 per cent, as at 1.04pm on Wednesday.

“Asia markets had largely commenced the session in red this morning, no surprise given the onslaught of worries setting in with regard to growth,” Shayne Heffernan, CEO and Founder of Heffx said.

Shayne Heffernan noted that with little development on the trade front, investors were likely to turn their attention to the sustained dip in US Treasury yields.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 3,245.05.

The projected upper bound is: 3,228.16.

The projected lower bound is: 3,096.92.

The projected closing price is: 3,162.54.

Candlesticks

A white body occurred (because prices closed higher 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 32 white candles and 18 black candles for a net of 14 white 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 40.3523. This is not an overbought or oversold reading. The last signal was a buy 2 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 28.59. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 16 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 -91. This is not a topping or bottoming area. The last signal was a buy 2 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 16 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -2.040 at 3,163.280. Volume was 3% above average (neutral) and Bollinger Bands were 86% wider than normal.

Open High Low Close Volume___
3,151.8903,163.8403,147.1703,163.280 217,101,936

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 3,185.09 3,272.88 3,180.42
Volatility: 7 13 15
Volume: 204,289,072 211,430,640 215,591,984

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 0.5% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume out of .STI (mildly bearish). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 12 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.

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