Singapore: STI Index (.STI) largely range-bound trading

Singapore: STI Index (.STI) largely range-bound trading

Singapore: STI Index (.STI) largely range-bound trading

This week’s trading in Singapore was one characterised by market watchers as largely range-bound. The Straits Times Index (STI) had either made small gains or losses, and at the week’s close eked out a 9.34 point or 0.3 per cent gain from the previous Friday’s close of 3,322.64.

Yesterday, trading opened following a lacklustre US session and lower-than-expected advance first-quarter estimates for the Singapore economy.

But while the blue-chip index managed to improve later in the session, possibly due to encouraging China trade figures for March, it needed a last-hour rally to close at 3,331.98, up just 1.16 points or 0.03 per cent.

Shayne Heffernan said: “To some extent, the Chinese exports surprise had actually helped to ignite a slight uptick for the STI, though it remains to be seen whether the counteracting imports disappointment may suggest weakness into April.”

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 3,251.44.

The projected upper bound is: 3,384.53.

The projected lower bound is: 3,285.73.

The projected closing price is: 3,335.13.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 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 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 (which appears to be the case with STRAITS TIMES) it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend 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.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 64.0048. This is not an overbought or oversold reading. The last signal was a sell 2 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 72.28. 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 4 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 67. This is not a topping or bottoming area. The last signal was a sell 3 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 9 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 1.160 at 3,331.980. Volume was 8% below average (neutral) and Bollinger Bands were 46% wider than normal.

Open High Low Close Volume___
3,330.6403,333.3803,318.9903,331.980 187,825,600

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

Moving Averages: 10-period 50-period 200-period
Close: 3,311.19 3,239.76 3,179.89
Volatility: 8 10 15
Volume: 235,288,272 215,908,912 218,865,712

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 7 periods. Our momentum oscillator is currently indicating that .STI is currently in an overbought condition.

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