Singapore: STI Index (.STI) investors still positive on fundamentals
Markets the world over faced heavy sell-offs last week but the question on investors’ minds had been whether a rebound was in sight.
Going by how Asian equities resumed declines yesterday after gains in the early session, signs are that the mood dampening markets is likely to drag on.
On equity sell-offs in Asia, FXTM’s chief market strategist Hussein Sayed said: “The bears seem well in control of the market and there are many reasons to justify their actions. Whether it’s weakening global economic growth, the ongoing US-China trade war, monetary policy tightening, fears of a hard Brexit or Italy’s budget woes… the list goes on.”
In Singapore, the benchmark Straits Times Index (STI) closed 0.32 per cent or 9.52 points higher to 2,981.54, under the key support level of 3,000. CMC market analyst Margaret Yang told The Straits Times the Singapore market held firm despite a broader sell-off in North Asia as investors remained positive on the fundamentals, but a true rebound would occur only after both the US and Chinese stock markets stopped bleeding.
Turnover on the Singapore bourse stood at roughly 1.62 billion shares worth $867 million in total. Decliners outnumbered advancers 202 to 162.
The flavour of the day was Creative Technology, which soared 68 cents or 12.6 per cent to close at $6.08. The home-grown consumer electronics firm revealed that its Super X-Fi audio device will go on sale in the United States from Thursday.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 3,156.01.
The projected upper bound is: 3,052.39.
The projected lower bound is: 2,901.57.
The projected closing price is: 2,976.98.
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 27 black candles for a net of 5 black candles.
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 21.9564. This is not an overbought or oversold reading. The last signal was a buy 0 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 28.94. This is where it usually bottoms. 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 buy 8 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 -140.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 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 sell 15 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed up 9.520 at 2,981.540. Volume was 1% below average (neutral) and Bollinger Bands were 77% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,034.55 3,155.32 3,360.90
Volatility: 15 15 16
Volume: 257,042,384 231,161,248 249,674,448
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 11.3% below its 200-period moving average and is in an downward trend. Volatility is high 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 12 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.
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