Singapore: STI Index (.STI) manufacturers anxious escalation of China-US trade tension

Singapore: STI Index (.STI) manufacturers anxious escalation of China-US trade tension

Singapore: STI Index (.STI) manufacturers anxious escalation of China-US trade tension

The US-China trade hostility, which is destroying growth chances in China and, by extension, Chinese demand for manufactured goods made in Singapore have made Singaporean producers jittery. Adding to this unease is the impending global collapse in technology demand which have made manufacturers in the country agitated.

“Anecdotal evidence suggests that manufacturers are increasingly concerned about the escalation of trade tensions between the world’s two largest economies,” said the Singapore Institute of Purchasing and Materials Management, which compiles the PMI index by surveying around 150 industrial firms.

It added that the sluggish overall reading was due to slower growth recorded in fresh orders, new exports, factory output, inventory and the employment level.

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 3,223.30.

The projected upper bound is: 3,207.82.

The projected lower bound is: 3,074.07.

The projected closing price is: 3,140.94.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 33 white candles and 17 black candles for a net of 16 white 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 6 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 34.3204. This is not an overbought or oversold reading. The last signal was a buy 6 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 31.72. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -81. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 20 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 18.910 at 3,142.370. Volume was 9% below average (neutral) and Bollinger Bands were 32% wider than normal.

Open High Low Close Volume___
3,129.7603,142.3703,125.3803,142.370 192,175,584

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

Moving Averages: 10-period 50-period 200-period
Close: 3,153.97 3,266.31 3,178.38
Volatility: 8 13 15
Volume: 203,928,560 210,868,032 214,181,152

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 1.1% 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 16 periods.

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