Singapore: STI Index (.STI) core inflation weaken in June
Singapore’s headline inflation eased in June, ending a four-month streak of edging upwards, according to consumer price index (CPI) figures released by the Department of Statistics on Tuesday. Core inflation also continued to ease, strengthening economists’ expectations of monetary easing ahead.
Headline inflation was 0.6 per cent year on year, down from 0.9 per cent in May and below economists’ expectations of 0.8 per cent. This was due to lower private road transport, services and retail inflation, as well as a larger decline in costs of electricity and gas and accommodation.
Private road transport costs edged up 0.2 per cent, slower than the 1.5 per cent rise the previous month. Accommodation costs fell 1.1 per cent, slightly faster than May’s 1 per cent pace.
Core inflation, which strips out accommodation and private road transport costs, edged down to 1.2 per cent year on year, in line with economists’ expectations and down from 1.3 per cent in May.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 3,290.26.
The projected upper bound is: 3,428.04.
The projected lower bound is: 3,323.77.
The projected closing price is: 3,375.91.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 71.8926. This is not an overbought or oversold reading. The last signal was a sell 1 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 62.79. 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 sell 11 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 89. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 10 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed up 15.910 at 3,373.130. Volume was 19% below average (neutral) and Bollinger Bands were 56% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,359.04 3,262.94 3,196.17
Volatility: 7 10 14
Volume: 181,097,232 205,055,232 212,034,368
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.
STRAITS TIMES is currently 5.5% above its 200-period moving average and is in an upward 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 bullish on .STI and have had this outlook for the last 25 periods.