Singapore: STI Index (.STI) Inflation Rises In December

Singapore: STI Index (.STI) Inflation Rises In December

Singapore: STI Index (.STI) Inflation Rises In December

Singapore’s consumer price inflation rose more-than-expected in December, data from the Monetary Authority of Singapore and the Ministry of Trade and Industry showed on Thursday.

The consumer price index rose 0.8 percent year-on-year in December, following a 0.6 percent increase in November. Economists had expected a 0.7 percent rise.

The rise in inflation was driven by an increase in private road transport inflation, and smaller rise in services inflation and food inflation.

MAS core inflation, which excludes the costs of accommodation and private road transport, rose to 0.7 percent in December from 0.6 percent in the preceding month.

On a month-on-month basis, consumer prices rose 0.3 percent in December, same of growth as in the previous month.

The MAS core CPI increased 0.4 percent in December, in contrast to a 0.1 percent fall in the prior month.

The central bank and the ministry forecast core inflation to come within the lower end of the 0.5- 1.5 percent range in 2020 and the core inflation averaged 1.0 percent in 2019.

Meanwhile, overall inflation was 0.6 percent in 2019 and projected to average 0.5-1.5 percent in 2020.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 3,221.40.

The projected upper bound is: 3,280.42.

The projected lower bound is: 3,188.81.

The projected closing price is: 3,234.61.

Candlesticks

A black body occurred (because prices closed lower 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 22 white candles and 26 black candles for a net of 4 black candles.

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 24.8250. This is not an overbought or oversold reading. The last signal was a sell 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 47.75. 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 54 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 -61. This is not a topping or bottoming area. The last signal was a sell 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 1 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -19.370 at 3,234.560. Volume was 34% above average (neutral) and Bollinger Bands were 34% narrower than normal.

Open     High      Low     Close     Volume___
3,251.8403,259.9003,231.3703,234.560 313,846,624
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 3,260.93 3,222.16 3,223.69
Volatility: 9 9 12
Volume: 235,850,224 249,964,544 224,056,528

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 0.3% above its 200-period moving average and is in an upward 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 bullish on .STI and have had this outlook for the last 19 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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