Singapore: STI Index (.STI) hits near 2-month low as most Southeast Asia markets fall

Singapore: STI Index (.STI) hits near 2-month low as most Southeast Asia markets fall

Singapore: STI Index (.STI) hits near 2-month low as most Southeast Asia markets fall

Most Southeast Asian stock markets fell tracking their global peers with Singapore taking the maximum hit on Wednesday (Dec 26), as continued concerns over political uncertainty in the US prompted investors to steer clear of riskier assets.

Local trading volumes were largely subdued due to the holiday season.

US equities fell into a tailspin on Christmas eve as investors fretted over a number of political issues, ranging from the convening of a crisis group to reports of US President Donald Trump considering the sacking of the Federal Reserve Chairman.

The drop created ripples across most equity markets around the globe.

Local equities followed suit, with Singapore’s index shedding more than 1 per cent to drop to its lowest since late-October. Losses in the island state were largely broad-based, with financials and industrials serving as the biggest weights on the benchmark.

Inflation in Singapore slowed slightly in November, implying that the Monetary Authority of Singapore may face lesser inflationary pressure to tighten policy in the future.

The STI closed on Wednesday at 3,011.15, down 1.31 per cent.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 3,117.27.

The projected upper bound is: 3,099.25.

The projected lower bound is: 2,922.13.

The projected closing price is: 3,010.69.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 2 black candles for a net of 5 white candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 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 9 falling windows in the last 50 candles–this makes the current falling window even more bearish.

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 38.6648. This is not an overbought or oversold reading. The last signal was a buy 2 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 39.01. 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 39 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 -154.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 11 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -39.910 at 3,011.150. Volume was 49% below average (consolidating)(neutral) and Bollinger Bands were 6% narrower than normal.

Open High Low Close Volume___
3,001.5303,022.2403,000.4503,011.150 111,947,000

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

Moving Averages: 10-period 50-period 200-period
Close: 3,061.65 3,067.86 3,273.94
Volatility: 18 18 16
Volume: 172,691,808 216,254,896 234,598,656

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 light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes.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 8.0% 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 5 periods.

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