Singapore: STI Index (.STI) hopes of easing Sino-U.S. trade tensions

Singapore: STI Index (.STI) hopes of easing Sino-U.S. trade tensions

Singapore: STI Index (.STI) hopes of easing Sino-U.S. trade tensions

Most Southeast Asian stock markets ended higher on Thursday on hopes of easing Sino-U.S. trade tensions in light of recent positive steps taken by both the countries, but the Thai index was pulled lower by weakness in energy-linked shares.

The sentiment across broader Asia seemed less pessimistic about the trade deal, with MSCI’s broadest index of Asia-Pacific shares outside Japan edging up 0.8 percent. 

Optimism about improving relations between the two superpowers grew after China made its first major U.S. soybean purchases in more than six months on Wednesday, two U.S. traders said, and its first since U.S. President Donald Trump and his Chinese counterpart Xi Jinping struck a trade war truce in early December.

Indonesia’s benchmark index climbed to a more than seven-month high, aided by consumer staples and telecom stocks.  Shares of cigarette maker Gudang Garam Tbk PT added 1.8 percent, while those of Telekomunikasi Indonesia (Persero) Tbk Perusahaan Perseroan PT rose to its highest in more than a week.

However, the Southeast Asia’s largest economy is expecting foreign direct investment to the country to be around $11 billion to $13 billion this year, less than the average in recent years of $20 billion per year.

Philippines benchmark index eked out their third straight sessions of gains, rising to one-week high. Meanwhile, the Philippine central bank held its benchmark interest rate steady on Thursday, as expected, in line with the
outlook for the inflation rate to cool.  The apex bank had raised rates by a total 175 basis points so far this year, at the past five consecutive meetings to tame inflation.

Singapore benchmark index climbed a near one-week high, while that of Malaysia added 0.8 percent.

Overall, the bias in prices is: Sideways

The projected upper bound is: 3,199.14.

The projected lower bound is: 3,016.77.

The projected closing price is: 3,107.95.

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 21 white candles and 29 black candles for a net of 8 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 8 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 36.9432. This is not an overbought or oversold reading. The last signal was a buy 0 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 52.67. 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 30 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 0. This is not a topping or bottoming area. The last signal was a sell 6 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 2 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 11.090 at 3,111.080. Volume was 10% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open High Low Close Volume___
3,104.0703,125.1003,102.4403,111.080 204,850,496

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

Moving Averages: 10-period 50-period 200-period
Close: 3,120.14 3,080.11 3,294.27
Volatility: 20 19 16
Volume: 227,299,232 231,530,608 237,972,048

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 up today (bullish) 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 5.6% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .STI (mildly bullish). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 15 periods.

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