Singapore: STI Index (.STI) expected to find support

Singapore: STI Index (.STI) expected to find support

Singapore: STI Index (.STI) expected to find support

The Singapore stock market has tracked lower in two straight sessions, sliding almost 70 points or 2.3 percent in that span. The Straits Times Index now rests just beneath the 3,165-point plateau although it’s expected to find support on Tuesday.

The global forecast for the Asian markets is cautiously optimistic on the belief the coronavirus will soon be eliminated. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The STI finished modestly lower on Monday as losses from the financial shares and industrial issues were mitigated by support from the properties.

A total of 1.50 billion shares changed hands with a turnover of 1.12 billion Singapore dollars (about 807.21 million U.S. dollars). gainers outnumbered Losers by 237 to 166.

The STI index went down 0.58 percent, or 18.33 points, to close at 3,163.15 on Monday.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,236.00.

The projected lower bound is: 3,115.24.

The projected closing price is: 3,175.62.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 21 black candles for a net of 5 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 43.9092. 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 44.71. 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 buy 5 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 -18. This is not a topping or bottoming area. The last signal was a buy 5 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 14 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 12.420 at 3,175.570. Volume was 3% below average (neutral) and Bollinger Bands were 64% wider than normal.

Open     High      Low     Close     Volume___
3,168.1503,195.5003,166.9903,175.570 233,884,800
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,173.17 3,214.35 3,212.32
Volatility: 18 12 12
Volume: 252,227,520 214,333,456 226,865,488

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 1.1% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of .STI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 10 periods.

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