Singapore: STI Index (.STI) and Asia shares cheered by Brexit deal hopes

Singapore: STI Index (.STI) and Asia shares cheered by Brexit deal hopes

Singapore: STI Index (.STI) and Asia shares cheered by Brexit deal hopes

The pound surged overnight and Asias shares rose on Wednesday (Oct 16) as investors looked to whether Britain can secure a deal to avoid a disorderly exit from the European Union.

Officials and diplomats involved in negotiations over the acrimonious divorce between the world’s fifth-largest economy and its biggest trading bloc said that differences over the terms of the split had narrowed significantly.

The news lit a fire under European and US equities, which jumped about 1 per cent on Tuesday. The British pound rocketed to US$1.28, a level not seen since May 21.

The pound has strengthened nearly 5 per cent over the past week as investors rushed to reprice the prospect of a last-minute Brexit deal before the end-October deadline.

Still, the pound lost steam in Asia, falling 0.3 per cent to US$1.2752, as uncertainties remained on whether a deal will be sealed at a make-or-break EU summit on Thursday and Friday and if Britain’s minority government can get it through a divided UK parliament.

In Singapore, the Straits Times Index was trading up 24.16 points or 0.8 per cent to 3,140.33 at 10:45am.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,191.41.

The projected lower bound is: 3,075.61.

The projected closing price is: 3,133.51.

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 24 white candles and 26 black candles for a net of 2 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 82.3438. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 7 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 51.76. 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 33 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 104.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 2 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 18.540 at 3,134.710. Volume was 19% below average (neutral) and Bollinger Bands were 50% narrower than normal.

Open     High      Low     Close     Volume___
3,131.1003,144.6103,120.2003,134.710 175,187,904
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,104.53 3,130.68 3,222.29
Volatility: 9 12 12
Volume: 193,676,736 219,368,608 212,396,752

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 2.7% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 7 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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