Singapore: STI Index (.STI) Investors are keeping a close eye on talks between U.S. and Chinese negotiators in Washington
Shares were mostly higher in Asia on Wednesday after a modestly high finish on Wall Street that extended the market’s gains into a fourth week.
The Nikkei 225 index NIK, +0.60% rose 0.3% despite news that Japan’s exports sank 8.4% in January from a year earlier, far more than forecast.
Hong Kong’s Hang Seng index HSI, +0.86% jumped 0.7%, while the Shanghai Composite SHCOMP, +0.16% slipped 0.2%. South Korea’s Kospi SEU, +1.09% jumped 0.9% and Australia S&P ASX 200 XJO, -0.17% slipped 0.3%. Stocks rose in Taiwan Y9999, +1.18% , Singapore STI, +0.49% and Indonesia JAKIDX, -0.05% .
Investors are keeping a close eye on talks between U.S. and Chinese negotiators in Washington that are aimed at ending a trade war between the world’s largest economies.
Data showed a 17% drop in Japan’s exports to China and 13% decline in exports to the rest of Asia including China helped dragged overall exports sharply lower. Japan’s imports fell 0.6%, leaving a deficit of 1.4 trillion yen ($12.8 billion), up 50% from a year earlier. The weak numbers suggest China’s slowdown and trade tensions with the United States are hurting demand.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 3,178.35.
The projected upper bound is: 3,350.49.
The projected lower bound is: 3,203.27.
The projected closing price is: 3,276.88.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.
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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 77.8985. This is not an overbought or oversold reading. The last signal was a sell 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 67.52. 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 76 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 120.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 22 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 4 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed up 13.830 at 3,273.630. Volume was 42% below average (neutral) and Bollinger Bands were 35% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,234.72 3,147.91 3,214.17
Volatility: 9 15 15
Volume: 201,338,448 190,596,944 230,798,512
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.
STRAITS TIMES is currently 1.9% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on .STI and have had this outlook for the last 28 periods.