Singapore: STI Index (.STI) fall bucking the positive trend in key global markets including the US

Singapore: STI Index (.STI) fall bucking the positive trend in key global markets including the US

Singapore: STI Index (.STI) fall bucking the positive trend in key global markets including the US

Singapore stocks opened weaker on Thursday (Aug 8), bucking the positive trend in key global markets including the US.

The Straits Times Index fell 0.68 per cent or 21.52 points to 3,163.17 points as at 9.03am.

Losers outnumbered gainers 73 to 50, after 54.9 million securities worth $108.7 million changed hands.

Banking stocks were in negative territory during early morning trade. DBS was down 0.88 per cent or 22 cents to $24.86, UOB slipped 0.23 per cent or six cents to $25.87, while OCBC lost 0.63 per cent or seven cents to $11.00 as at 9.01am.

Other active index securities included the Singapore Exchange (SGX) which gained 0.25 per cent or two cents to $8.04, Keppel Corporation which dropped 1 per cent or six cents to $5.93, and Ascendas Reit which rose 0.33 per cent or one cent to $3.07 as at 9.01am.

The Singapore bourse’s losses on Thursday morning run counter to the mild gains seen in other markets around the world.

In the US, the S&P 500 recovered from steep early losses to end slightly higher on Wednesday, as investors snapped up oversold shares and bond yields rebounded from significant lows that raised fears about a recession.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 3,233.58.

The projected lower bound is: 3,105.34.

The projected closing price is: 3,169.46.

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 32 white candles and 17 black candles for a net of 15 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 17.3860. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 13 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 25.71. 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 23 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 -119.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 7 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 22 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -15.750 at 3,168.940. Volume was 14% above average (neutral) and Bollinger Bands were 57% wider than normal.

Open     High      Low     Close     Volume___
3,170.5403,184.4703,159.4503,168.940 243,493,920
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,263.29 3,286.24 3,208.13
Volatility: 13 12 14
Volume: 231,534,656 211,561,392 210,502,592

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 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 7 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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