Singapore: STI Index (.STI) caution ahead of a central bank meeting on Friday

Singapore: STI Index (.STI) caution ahead of a central bank meeting on Friday

Singapore: STI Index (.STI) caution ahead of a central bank meeting on Friday 

Philippine shares snapped a three-day losing streak on Tuesday, while Singapore fell for a fourth straight session on caution ahead of a central bank meeting on Friday in which it is expected to slightly tighten the monetary policy.

Sentiment was subdued in the region after the International Monetary Fund cut global growth forecasts for 2018 and 2019 and downgraded the outlook for the US and China, citing trade policy tensions.

Rising US Treasury yields also capped gains in equities, with nagging concerns over growth prospects affecting Chinese stocks despite Beijing’s steps to support the economy and contain the effects of an escalating trade war.

Singapore’s FTSE Straits Times Index ended 0.5% lower, with Consumer shares dragging the city-state’s index lower. Thai Beverage PCL fell 3.9% while DBS Group Holdings declined 0.8%.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3,233.19.

The projected lower bound is: 3,094.39.

The projected closing price is: 3,163.79.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 20 white candles and 28 black candles for a net of 8 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is 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 6.6070. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 8 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 40.50. 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 19 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 -151.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 1 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -14.850 at 3,166.600. Volume was 9% below average (neutral) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
3,180.6003,187.1803,160.8503,166.600 212,899,520

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

Moving Averages: 10-period 50-period 200-period
Close: 3,228.74 3,220.69 3,392.85
Volatility: 11 14 15
Volume: 209,827,664 223,644,384 245,270,272

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 6.7% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on .STI and have had this outlook for the last 10 periods.

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