Singapore: STI Index (.STI) Continuation of Uptrend

Singapore: STI Index (.STI) Continuation of Uptrend

Singapore: STI Index (.STI) Continuation of Uptrend

Most stock markets in the region traded flat or lower on Wednesday as investors waited for more developments on US-China trade, but Singapore bucked the trend, boosted by bright spots in corporate earnings.

Local shares rose for a third straight session, with the Straits Times Index closing at 3,262.69, higher by 0.43 per cent or 14.06 points.

About 1.71 billion securities worth S$1.4 billion changed hands. Meanwhile, advancers edged out decliners 209 to 177, led by financials and industrial companies.

Real estate firm Hongkong Land Holdings and industrial conglomerate Jardine Matheson Holdings were among the top gainers, rising as much as 3.5 per cent and 2.9 per cent each.

All three Singapore banks also closed higher, with DBS Group leading the charge. The counter ended at S$26.40, up 0.88 per cent or S$0.23.

But StarHub was one hot stock, jumping as much as 9.8 per cent to S$1.45 on a cum-dividend basis during morning trade, on the back of improved net profit and a potential joint 5G bid with another mobile network operator.

The mainboard-listed telco released its third-quarter results on Tuesday which saw its net profit rise 1.7 per cent. The news led some brokerages like CGS-CIMB to upgrade their views on StarHub.

In contrast to earlier days of flat trading, shares of StarHub finished at S$1.43 on Wednesday, up 8.33 per cent or S$0.11, with nearly 15 million shares changing hands.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 3,185.19.

The projected upper bound is: 3,321.19.

The projected lower bound is: 3,212.44.

The projected closing price is: 3,266.81.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 2 black candles for a net of 5 white candles. During the past 50 bars, there have been 24 white candles and 25 black candles for a net of 1 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 86.0993. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 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 73.97. This is where it usually tops. 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 buy 48 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 122.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 14 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 17 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 14.060 at 3,262.690. Volume was 16% above average (neutral) and Bollinger Bands were 14% wider than normal.

Open     High      Low     Close     Volume___
3,252.6103,265.7503,250.9403,262.690 248,859,504
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 3,215.19 3,149.93 3,225.37
Volatility: 5 11 12
Volume: 212,004,640 203,570,688 213,112,240

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% above its 200-period moving average and is in an upward 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 into .STI (mildly bullish). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 7 periods. Our momentum oscillator is currently indicating that .STI is currently in an overbought condition.

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