Singapore Exchange HEFFX Highlights: Target $8

Singapore Exchange HEFFX Highlights: Target $8

Singapore Exchange Limited is engaged in operating integrated securities exchange and derivatives exchange in Singapore and related clearing houses. The Company is engaged in providing services, such as investment holding, treasury management, provision of management and administrative services to related corporations, provision of contract processing and technology connectivity services. The Company operates through four segments: Equities and Fixed Income, which is engaged in the provision of issuer services, securities trading and clearing, post trade services, membership and collateral management; Derivatives, which is engaged in the provision of derivatives trading and clearing services, membership and collateral management; Market Data and Connectivity, which is engaged in the provision of market data and connectivity services, and Corporate, which includes corporate activities. It offers a suite of derivatives products across Asian equity indices, commodities and currencies.

THE Singapore Exchange (SGX) has posted a net profit of S$103.9 million in the fourth quarter, up 24.1 per cent from the same period a year earlier.

Revenue in the three months ended June 30 rose 16.5 per cent to S$248 million, led by record derivatives revenue of S$130.1 million, up 52.2 per cent from the same period a year earlier.

Equities and fixed income revenue fell 9.4 per cent to S$92 million.

https://www.businesstimes.com.sg/companies-markets/singapore-exchange-q4-profit-up-24-on-record-derivatives-revenue

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

The projected upper bound is: 8.20.

The projected lower bound is: 7.78.

The projected closing price is: 7.99.

SINGAPORE EXCHAN closed up 0.200 at 7.980. Volume was 67% above average (neutral) and Bollinger Bands were 45% narrower than normal.

Open     High      Low     Close     Volume

7.720    7.980    7.720    7.980   4,610,700

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

Moving Averages: 10-period     50-period     200-period
Close: 7.97 7.78 7.46
Volatility: 20 17 18
Volume: 2,436,950 2,511,092 2,623,522

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

SINGAPORE EXCHAN is currently 7.0% above 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 SGXL.SI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on SGXL.SI and have had this outlook for the last 2 periods.

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 51.1364. This is not an overbought or oversold reading. The last signal was a sell 4 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 55.02. 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 25 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 -112.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 5 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 19 period(s) ago.

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 22 white candles and 20 black candles for a net of 2 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with SINGAPORE EXCHAN), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

A piercing line occurred (which indicates that prices moved down on the previous bar, opened even lower, but then closed significantly higher). This implies strength as the momentum appears to be shifting from the bears to the bulls. Note that the higher the close of the white candle (relative to the black candle), the more bullish the Piercing Line pattern.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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