Singapore: STI Index (.STI) drops to near 5-month low

Singapore: STI Index (.STI) drops to near 5-month low

Singapore: STI Index (.STI) drops to near 5-month low

Most Southeast Asian stock markets rose on Thursday ahead of a key economic data announcement by China, with Philippines leading gains, while Singapore shares fell to a near five-month low.

China’s PMI, due on Friday, is expected to have shrunk in May according to a Reuters poll. China watchers say the central bank will have to keep up policy support to prevent a hard-landing for the economy.

Meanwhile, Sino-U.S. trade tensions continued to take precedence in global financial markets.

“The continued aggravation of trade tensions between China and the US has sent investors scrambling to find safe havens amid a highly volatile market,” a note from OCBC said. “Investors seem resigned to a prolonged trade war and a dimmed global growth outlook.”

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 3,238.67.

The projected upper bound is: 3,207.46.

The projected lower bound is: 3,075.74.

The projected closing price is: 3,141.60.

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 19 black candles for a net of 12 white 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 35.9874. 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 25.67. 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 17 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 -104.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 17 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -20.280 at 3,143.000. Volume was 12% below average (neutral) and Bollinger Bands were 73% wider than normal.

Open High Low Close Volume___
3,147.7703,159.2703,133.6003,143.000 185,345,520

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

Moving Averages: 10-period 50-period 200-period
Close: 3,177.51 3,271.48 3,179.90
Volatility: 8 13 15
Volume: 203,873,760 212,155,264 215,066,144

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 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 13 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.

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