Singapore: STI Index (.STI) local earnings reports and China data due out this week

Singapore: STI Index (.STI) local earnings reports and China data due out this week

Singapore: STI Index (.STI) local earnings reports and China data due out this week

Asian markets were given a boost from the middle of the past week on positive earnings reports from Wall Street and developments in US-China trade relations.

But as markets head into the first full week of November, all eyes will be on political developments in the United States, with the midterm elections tomorrow.

The US midterm elections are arguably something that financial markets have overlooked when you consider the number of different external uncertainties that have caught the attention in recent weeks.

In Singapore, the earnings season continues to take centre stage with many Straits Times Index constituents releasing their earnings results for the past quarter this week. Among them are DBS’ third-quarter report today and Yangzijiang Shipbuilding’s third-quarter results on Wednesday.

Meanwhile, Thursday will be an exceptionally busy day with Singtel, Genting Singapore and City Developments due to report earnings for the past quarter.

A slew of economic data releases for October will be out this week in China. Among them are today’s Caixin October services purchasing managers’ index, foreign reserves figures on Wednesday, trade data on Thursday, and consumer price index and producer price index figures on Friday.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 3,143.50.

The projected upper bound is: 3,195.36.

The projected lower bound is: 3,033.56.

The projected closing price is: 3,114.46.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 7 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 97.8195. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 54.61. 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 139.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 1 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 55.540 at 3,116.390. Volume was 39% above average (neutral) and Bollinger Bands were 16% wider than normal.

Open High Low Close Volume___
3,081.6703,121.2703,077.5003,116.390 328,111,296

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

Moving Averages: 10-period 50-period 200-period
Close: 3,027.04 3,141.22 3,350.11
Volatility: 22 17 16
Volume: 258,006,592 233,091,824 250,167,152

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
STRAITS TIMES is currently 7.0% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of .STI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 16 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH