Singapore: STI Index (.STI) headed for its weakest annual growth rate in a decade

Singapore: STI Index (.STI) headed for its weakest annual growth rate in a decade

Singapore: STI Index (.STI) headed for its weakest annual growth rate in a decade

Singapore is headed for its weakest annual growth rate in a decade. It’s blaming its troubles on the US-China trade war.

The country warned Tuesday that economic growth could fall to 0% this year. Previously, it predicted its economy would grow by 1.5% to 2.5%.

That kind of growth would be the worst since 2009,when Singapore’s GDP contracted by 0.6%, according to the International Monetary Fund.

The global growth outlook has weakened in part because of escalating trade tensions between the United States and China, Singapore’s Ministry of Trade and Industry said.

A recession looks unavoidable for Singapore, Sian Fenner, lead Asian economist for Oxford Economics, wrote in a research note.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 3,211.07.

The projected lower bound is: 3,083.32.

The projected closing price is: 3,147.20.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 31 white candles and 17 black candles for a net of 14 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 5 falling windows in the last 50 candles–this makes the current falling window even more bearish.

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 21.3479. 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 23.46. 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 25 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 -103.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 24 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -22.210 at 3,146.730. Volume was 6% above average (neutral) and Bollinger Bands were 78% wider than normal.

Open     High      Low     Close     Volume___
3,143.2103,149.2203,132.2003,146.730 223,995,104
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,223.84 3,287.73 3,209.49
Volatility: 14 12 14
Volume: 221,740,000 208,033,008 208,942,128

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
STRAITS TIMES is currently 2.0% 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 9 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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