Home Asia Singapore: STI Index (.STI) fell 0.2%, with financials dragging the index

Singapore: STI Index (.STI) fell 0.2%, with financials dragging the index

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Singapore: STI Index (.STI) fell 0.2%, with financials dragging the index

Regional markets managed to get something out of a lacklustre trading day but the local bourse was dealt a losing hand by the banks.

The downbeat sentiment sent the Straits Times Index (STI) down 5.45 points, or 0.17 per cent, to 3,165.32 – in a stark contrast with China, Hong Kong, Japan, Malaysia and South Korea, which all closed higher.

Shayne Heffernan, CEO and Founder of Heffx said the market here lacked any real direction, given the lack of reaction to US President Donald Trump’s talk of the United States not being ready to make a trade deal with China.

“It had also been a mixed bag between sectors with no clear indication of changes in risk sentiment despite Mr Trump’s seeming threat of the potential for more tariffs on Chinese imports to come,” he added.

Volumes here clocked in at 929.37 million shares worth $1.74 billion, with winners pipping losers 188 to 177, while only 12 STI stocks closed in the red.

Financials weighed on the STI: DBS Bank lost 0.4 per cent to $24.96; OCBC Bank dropped 0.5 per cent to $10.94; and, United Overseas Bank (UOB) pared gains from recent sessions to end at $24.31, down 1.6 per cent. UOB dipped as trading volume surged during market pre-close due to re-balancing of the MSCI Singapore Index.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 3,230.30.

The projected lower bound is: 3,099.04.

The projected closing price is: 3,164.67.

Candlesticks

A black body occurred (because prices closed lower 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 32 white candles and 18 black candles for a net of 14 white candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with STRAITS TIMES), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 30.2852. This is not an overbought or oversold reading. The last signal was a buy 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 28.90. 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 15 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 -92. This is not a topping or bottoming area. The last signal was a buy 1 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 15 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -5.450 at 3,165.320. Volume was 46% above average (neutral) and Bollinger Bands were 98% wider than normal.

Open High Low Close Volume___
3,171.1403,171.3803,156.9503,165.320 308,017,408

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

Moving Averages: 10-period 50-period 200-period
Close: 3,191.13 3,273.62 3,181.02
Volatility: 7 13 15
Volume: 205,538,800 213,705,200 215,929,872

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 0.5% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 11 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.

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