Singapore: STI Index (.STI) dips as hopes for sizeable US rate cut fade

Singapore: STI Index (.STI) dips as hopes for sizeable US rate cut fade

Singapore: STI Index (.STI) dips as hopes for sizeable US rate cut fade

Diminished hopes for a sizeable interest rate cut in the United States continued to affect local counters, especially in the real estate investment trust (Reits) sector.

The iEdge S-Reit 20 Index was down 1.7 per cent to 1,445.77 yesterday.

Reits had been rallying strongly recently on hopes of rate cuts.

News last week that the Monetary Authority of Singapore was considering raising the leverage limit sent them even higher, only for last Friday’s strong US jobs data to put an end to the rally – for now.

That said, CGS-CIMB remains “overweight” on the sector, but cautioned that investors should be selective when picking stocks.

Its top picks include Suntec Reit, down 1.5 per cent to $1.95, Mapletree Commercial Trust, which fell 1.9 per cent to $2.05, and Keppel DC Reit, off 2.9 per cent to $1.67.

The gloomier mood across the market sent the Straits Times Index (STI) down 4.77 points, or 0.14 per cent, to 3,329.46.

Australia, China, Hong Kong and South Korea closed lower, while Japan and Malaysia gained.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 3,276.89.

The projected upper bound is: 3,402.34.

The projected lower bound is: 3,255.48.

The projected closing price is: 3,328.91.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 31 white candles and 18 black candles for a net of 13 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators
Review of STRAITS TIMES (.STI)
as of 9/07/2019

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 32.3363. 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 59.00. 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 1 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 -2. This is not a topping or bottoming area. The last signal was a sell 2 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 0 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -4.770 at 3,329.460. Volume was 3% above average (neutral) and Bollinger Bands were 23% wider than normal.

Open High Low Close Volume___
3,337.9603,349.6103,322.7503,329.460 218,738,016

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

Moving Averages: 10-period     50-period     200-period
Close: 3,346.51 3,256.27 3,190.19
Volatility: 12 14 15
Volume: 229,769,088 214,298,848 213,149,328

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 4.4% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 15 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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