Singapore: STI Index (.STI) investor sentiment improved following last week’s high-level trade negotiations between the United States and China

Singapore: STI Index (.STI) investor sentiment improved following last week’s high-level trade negotiations between the United States and China

Singapore: STI Index (.STI) investor sentiment improved following last week’s high-level trade negotiations between the United States and China

Asia Pacific markets rose across the board on Monday as investor sentiment improved following last week’s high-level trade negotiations between the United States and China.

Mainland Chinese markets traded up at the close: The Shanghai composite added 1.15% to 3,007.88, the Shenzhen composite rose about 1.43% to 1,660.33 and the Shenzhen component added 1.24% to 9,786.64.

Customs data showed China’s import and export numbers for September were worse than expected. In U.S. dollar terms, Chinese exports fell 3.2% on year last month while imports declined 8.5% for the same period, Reuters reported. The total trade balance in September was said to be $39.65 billion.

Hong Kong’s Hang Seng index rose 0.84% in late-afternoon trade. In South Korea, the Kospi index gained 1.11% to close at 2,067.40, with major chipmakers Samsung and SK Hynix advancing 1.73% and 0.63%, respectively. Last week Samsung announced profit guidance for its third quarter at a level slightly better than what market watchers were predicting, which lead some analysts to suggest that business conditions in the semiconductor sector may slowly be on the mend. Samsung’s full quarterly results are due later this month.

In Australia, the benchmark ASX 200 rose 0.54% to 6,642.60, with the heavily weighted financial subindex gaining 0.65%. The country’s so-called Big Four banks advanced: ANZ shares rose 0.65%, Commonwealth Bank was up 0.38%, Westpac added 0.52% and the National Australia Bank gained 0.57%.

Major indexes in India, Singapore, Indonesia also advanced in afternoon trade. Markets in Japan are closed for a public holiday.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 3,158.77.

The projected upper bound is: 3,185.58.

The projected lower bound is: 3,056.62.

The projected closing price is: 3,121.10.

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 23 white candles and 27 black candles for a net of 4 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 4 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 68.0836. This is not an overbought or oversold reading. The last signal was a buy 5 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 49.09. 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 31 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 67. This is not a topping or bottoming area. The last signal was a buy 5 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 buy 0 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 10.480 at 3,124.450. Volume was 25% below average (neutral) and Bollinger Bands were 40% narrower than normal.

Open     High      Low     Close     Volume___
3,129.5503,131.9403,119.6003,124.450 162,442,640
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,104.39 3,134.77 3,221.53
Volatility: 13 13 12
Volume: 201,007,280 222,883,856 211,837,792

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 3.0% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .STI (mildly bearish). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 5 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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