Singapore: STI Index (.STI) Clash of the Trade Titans

Singapore: STI Index (.STI) Clash of the Trade Titans

Singapore: STI Index (.STI) Clash of the Trade Titans

Japan’s Prime Minister Shinzo Abe on Sunday called for an early conclusion of a regional trade pact that ensures free and rules-based commerce in the face of an increasingly protectionist United States under President Donald Trump.

At a meeting of the Regional Comprehensive Economic Partnership, or RCEP, co-chaired by Japan and Singapore, trade ministers and officials from 16 countries renewed their commitment to speed up negotiations on outstanding issues by the end of the year.

Japan seeks to take leadership in shaping the pact as an alternative to a Pacific Rim free-trade grouping that Trump abandoned early this year.

At a joint news conference after the talks, Japanese Trade Minister Horoshige Seko and his Singaporean counterpart, Chang Chun Sing, said the 16 participants agreed to reach a basic conclusion at a year-end Singapore meeting. They noted that the participants see it as a chance to show Asia’s commitment to defend free trade.

In a joint statement, the ministers said achieving a pact was important especially “in view of the current global trade environment, which faces serious risks from unilateral trade actions and reactions, as well as their debilitating implications on the multilateral trading system”. They also pledged to seek breakthroughs in politically challenging areas.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 3,397.67.

The projected upper bound is: 3,329.23.

The projected lower bound is: 3,194.97.

The projected closing price is: 3,262.10.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 19 white candles and 29 black candles for a net of 10 black candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

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 32.9010. This is not an overbought or oversold reading. The last signal was a buy 3 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 29.28. 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 110 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 -74. This is not a topping or bottoming area. The last signal was a buy 3 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 40 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 11.130 at 3,268.700. Volume was 15% above average (neutral) and Bollinger Bands were 67% wider than normal.

Open High Low Close Volume___
3,269.2003,286.9203,251.1203,268.700 292,601,824

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

Moving Averages: 10-period 50-period 200-period
Close: 3,285.14 3,467.22 3,437.89
Volatility: 11 12 14
Volume: 268,129,312 266,762,672 235,615,728

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 4.9% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 27 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.

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