Singapore: STI Index (.STI) cautiously rose following a volatile week

Singapore: STI Index (.STI) cautiously rose following a volatile week

Singapore: STI Index (.STI) cautiously rose following a volatile week

Asian markets cautiously rose in early trading Monday, following a volatile week for global markets as U.S.-China trade tensions increased.

Goldman Sachs on Sunday said that it does not expect a trade deal before the 2020 presidential election, and warned that the ongoing trade war is having a greater effect on the U.S. economy that first estimated. In a note to investors, the bank cut its growth forecast for the economy and said the risk of recession is rising as businesses reduce spending due to trade-war uncertainties.

Early Monday, China’s central bank set the midpoint for the yuan weaker than 7 per U.S. dollar for the third day in a row. The People’s Bank of China set the currency’s reference point at 7.0211 per dollar, weaker than Friday’s level but still stronger than what analysts had expected.

Hong Kong’s Hang Seng Index HSI, -0.44%   gave up early gains and was last about flat, while the Shanghai Composite SHCOMP, +1.45%   gained 0.7%. South Korea’s Kospi 180721, +0.23%   advanced 0.4%, while Taiwan’s TaiexY9999, -0.21%   was about flat and Indonesia’s JSX Composite JAKIDX, -0.50%   declined slightly. Australia’s S&P/ASX 200 XJO, +0.09%   was little changed. Markets in Japan and Singapore were closed for holidays.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 3,233.12.

The projected lower bound is: 3,106.80.

The projected closing price is: 3,169.96.

Candlesticks

During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 31 white candles and 17 black candles for a net of 14 white candles.

A gravestone doji occurred. This often signifies a top (the longer the upper shadow, the more bearish the signal).

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 21.9208. This is not an overbought or oversold reading. The last signal was a buy 0 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 25.71. 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 24 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 -99. This is not a topping or bottoming area. The last signal was a buy 0 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 23 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed unchanged at 3,168.940. Volume was 100% below average (consolidating) and Bollinger Bands were 67% wider than normal.

Open     High      Low     Close     Volume___
3,168.9403,168.9403,168.9403,168.940 0
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,243.81 3,287.26 3,208.82
Volatility: 14 12 14
Volume: 213,794,384 207,264,880 209,338,896

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 1.2% below 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 .STI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 8 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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