Singapore: STI Index (.STI) lacklustre trade as persistent concerns about global economic activity

Singapore: STI Index (.STI) lacklustre trade as persistent concerns about global economic activity

Singapore: STI Index (.STI) lacklustre trade as persistent concerns about global economic activity

Most Southeast Asian markets were flat on Thursday in lacklustre trade as persistent concerns about global economic activity and escalating trade wars weigh on investor sentiment.

Investors were cautious after the International Monetary Fund on Wednesday warned that the Sino-U.S. tariffs could cut 2020 global gross domestic product by 0.5%, or about $455 billion. The estimate does not include the impact of a looming U.S. trade war with Mexico, which would further depress global growth.

International trade tensions have ramped up over the last month as U.S. President Donald Trump’s administration rekindled a bitter trade war with China, and threatened 5% tariffs on goods from Mexico starting on Monday.

The Singapore bourse was marginally lower with index heavyweights DBS Group Holdings Ltd and Jardine Strategic Holdings Ltd declining 0.4% and 0.6%, respectively.

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 3,220.32.

The projected upper bound is: 3,211.28.

The projected lower bound is: 3,079.61.

The projected closing price is: 3,145.45.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 2 black candles for a net of 5 white candles. During the past 50 bars, there have been 33 white candles and 16 black candles for a net of 17 white candles.

A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold (which appears to be the case with STRAITS TIMES) to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.

A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend (which appears to be the case with STRAITS TIMES) it is called a bullish hammer.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 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 74.8961. This is not an overbought or oversold reading. The last signal was a buy 8 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 33.17. 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 2 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 -57. This is not a topping or bottoming area. The last signal was a buy 2 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 3.810 at 3,146.180. Volume was 50% above average (neutral) and Bollinger Bands were 10% wider than normal.

Open High Low Close Volume___
3,144.4303,147.6403,125.9603,146.180 316,873,856

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 3,148.44 3,264.18 3,177.75
Volatility: 8 13 15
Volume: 196,082,640 210,237,808 213,381,136

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 1.0% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 18 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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