Singapore: STI Index (.STI) falls as markets attempt to find direction

Singapore: STI Index (.STI) falls as markets attempt to find direction

Singapore: STI Index (.STI) falls as markets attempt to find direction

It was a mixed day for local shares as investors continued to get a handle on the shifting nature of the United States-China trade talks.

That said, real estate investment trusts (Reits) traded decidedly higher yesterday after US Federal Reserve chairman Jerome Powell said the central bank is likely to hold interest rates in the coming months.

The end result was a second straight session of losses for the Straits Times Index (STI), which closed down 12.78 points, or 0.4 per cent, to 3,207.85, weighed down by Singtel and some Jardine counters.

Elsewhere, regional markets were mixed. Australia, Japan and Taiwan closed up, China barely moved, but Hong Kong, Malaysia and South Korea ended in the red.

Beijing’s move at the weekend to consider raising penalties on intellectual property theft – a key issue obstructing a trade pact – gave market participants hope that a mini trade deal could be signed sooner.

But markets appeared to struggle for direction, with observers noting that an air of caution remains as both sides have again failed to provide details of where talks were at.

Local market participants were lifted by sentiment that the manufacturing sector may be heading up after factory output unexpectedly grew 4 per cent year on year last month. This beat street expectations of a 1.4 per cent fall and outstripped September’s revised figure of 0.7 per cent growth.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,271.40.

The projected lower bound is: 3,161.61.

The projected closing price is: 3,216.50.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 black 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 44.4089. 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 50.40. 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 13 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 -99. This is not a topping or bottoming area. The last signal was a buy 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 9 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 7.680 at 3,215.530. Volume was 70% above average (neutral) and Bollinger Bands were 51% narrower than normal.

Open     High      Low     Close     Volume___
3,213.1903,220.1403,201.7803,215.530 414,062,048
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,225.99 3,176.06 3,228.48
Volatility: 11 11 12
Volume: 414,616,864 253,808,224 225,808,976

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 0.4% below its 200-period moving average and is in an upward trend. Volatility is 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 22 periods.

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