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Singapore: STI Index (.STI) cautious trading

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Singapore: STI Index (.STI) cautious trading

Sentiment in the Singapore market was generally risk-off yesterday. Investors took to profit-taking on property-related counters that have rallied, but dips in stocks with heavier exposures to Hong Kong left the blue-chip index nearly unchanged.

The Straits Times Index (STI) closed at 3,222.63, up 1.97 points or 0.06 per cent yesterday. For the week, it advanced 56.34 points or 1.8 per cent from the previous Friday’s close of 3,166.29. Investors remained concerned over the uncertainty of US-China trade relations, the Hong Kong protests and attacks on two tankers in the Gulf of Oman.

In Singapore, trading volume clocked in at 773.11 million securities, 65 per cent of the daily average in the first five months of the year. Total turnover was $893.3 million, 86 per cent of the January-to-May daily average. Across the market, decliners pipped advancers 208 to 170.

The index had 11 of the STI’s 30 components in the red. Sembcorp Industries slid one cent or 0.4 per cent to $2.37 and Sembcorp Marine fell two cents or 1.3 per cent to $1.47. Keppel Corp was flat at $6.30.

Black gold headed south on Wednesday after the US stockpile rose but reversed those dips a day later on supply concerns emanating from the attacks in the Gulf of Oman. As expected, the US blamed Iran for the attacks, while Teheran called the timing “suspicious”.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,285.64.

The projected lower bound is: 3,157.33.

The projected closing price is: 3,221.49.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 1 black candles for a net of 7 white candles. During the past 50 bars, there have been 33 white candles and 16 black candles for a net of 17 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 90.9124. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 14 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 55.81. 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 8 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 124.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 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 6 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 1.970 at 3,222.630. Volume was 23% below average (neutral) and Bollinger Bands were 23% narrower than normal.

Open High Low Close Volume___
3,214.6803,223.6403,209.9303,222.630 161,848,192

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

Moving Averages: 10-period 50-period 200-period
Close: 3,176.94 3,261.57 3,176.92
Volatility: 5 12 15
Volume: 180,777,488 208,766,288 212,496,496

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 1.4% above its 200-period moving average and is in an downward trend. Volatility is low 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 24 periods.

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