Singapore: STI Index (.STI) Investors selling off blue chips, large-cap stocks ahead of earnings reports

Singapore: STI Index (.STI) Investors selling off blue chips, large-cap stocks ahead of earnings reports

Singapore: STI Index (.STI) Investors selling off blue chips, large-cap stocks ahead of earnings reports

Local shares took their cue from a positive session on Wall Street last Friday but pessimism eventually took hold to send the market lower yesterday.

There were mixed messages across the region: Japan and South Korea posted strong gains, while Hong Kong and China edged lower on growth fears and profit-taking.

The Straits Times Index, which traded as high as 3,339 in the first hour, eased as the session went on, closing at 3,325.86, 6.12 points, or 0.2 per cent lower.

Market watchers said investors were closing positions on blue chips and large-cap stocks before earnings reports are due.

Genting Singapore was among 17 of the blue chips that make up the STI to end in the red.

It slipped 0.5 per cent to 96 cents, with 29.1 million shares changing hands, the most traded on STI.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 3,257.66.

The projected upper bound is: 3,384.14.

The projected lower bound is: 3,285.67.

The projected closing price is: 3,334.91.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white 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 48.3381. This is not an overbought or oversold reading. The last signal was a sell 4 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 70.69. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 1 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 60. 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 buy 11 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 6.180 at 3,332.040. Volume was 4% below average (neutral) and Bollinger Bands were 49% wider than normal.

Open High Low Close Volume___
3,326.7803,335.6603,325.8403,332.040 195,429,600

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 3,323.95 3,245.34 3,180.80
Volatility: 6 10 15
Volume: 232,063,360 213,821,552 218,353,808

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 4.8% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume into .STI (bullish). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 9 periods. Our momentum oscillator is currently indicating that .STI is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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