Singapore: STI Index (.STI) Investors betting on hopes that U.S.-China tensions will ease

Singapore: STI Index (.STI) Investors betting on hopes that U.S.-China tensions will ease

Singapore: STI Index (.STI) Investors betting on hopes that U.S.-China tensions will ease

Singapore and Malaysia shares snapped a six-session losing streak Wednesday as banking stocks climbed on the back of broad Asian equities rally as investors bet that U.S.-China tensions will ease.

The Straits Times Index closed up 1.3% at 3099.99 and the FBM KLCI ended 0.6% higher at 1663.27. United Overseas Bank added 1.5% to lead other banks in Singapore, while CIMB Group Holdings added 4.4%, the biggest index gainer in Malaysia.

News of the arrest, which came days after U.S. and China agreed to a temporary truce on the trade war, had raised doubts over prospects of any resolution to the months-long spat. Meanwhile, Chinese officials reportedly agreed to cut tariffs on imported American cars to 15% from 40% on Monday.

Overall, the bias in prices is: Sideways

The projected upper bound is: 3,188.89.

The projected lower bound is: 3,005.39.

The projected closing price is: 3,097.14.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 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 18.4455. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 50.95. 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 29 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 -36. This is not a topping or bottoming area. The last signal was a sell 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 sell 1 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 40.710 at 3,099.990. Volume was 7% below average (neutral) and Bollinger Bands were 11% narrower than normal.

Open High Low Close Volume___
3,075.6203,101.1003,073.0203,099.990 212,610,800

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

Moving Averages: 10-period 50-period 200-period
Close: 3,119.97 3,083.23 3,295.91
Volatility: 20 19 16
Volume: 230,271,632 232,437,040 238,648,880

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 5.9% 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 14 periods.

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