Singapore: STI Index (.STI) market settles after rallying on US-China trade hopes

Singapore: STI Index (.STI) market settles after rallying on US-China trade hopes

Singapore: STI Index (.STI) market settles after rallying on US-China trade hopes

Asian markets were mostly lower Thursday as U.S. and Chinese officials wrapped up three days of talks in Beijing without significant breakthroughs.

Japan’s Nikkei 225 index, which closed up 1.1 percent on Wednesday, retreated 1.4 percent to 20,141.93. The Kospi in South Korea dropped 0.1 percent to 2,062.49. Hong Kong’s Hang Seng shed 0.3 percent to 26,394.06, while the Shanghai Composite index was flat at 2,545.05. Australia’s S&P ASX 200 lost 0.3 percent to 5,759.80. Shares fell in Taiwan but rose in Singapore, Indonesia and the Philippines.

Stocks rose for the fourth consecutive session after American and Chinese negotiators extended their talks to a third day. Traders took this as a positive sign, but a partial government shutdown at home that appeared far from being resolved limited gains. The S&P 500 index added 0.4 percent to 2,584.96. The Dow Jones Industrial Average climbed 0.4 percent to 23,879.12 and the Nasdaq composite was 0.9 percent higher at 6,957.08. The Russell 2000 index of smaller company stocks rose 0.9 percent to 1,438.81.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 3,116.44.

The projected upper bound is: 3,278.65.

The projected lower bound is: 3,097.05.

The projected closing price is: 3,187.85.

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 29 white candles and 20 black candles for a net of 9 white candles.

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 98.9902. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 12 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 64.73. 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 49 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 183.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 4 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 3 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 25.440 at 3,183.510. Volume was 24% above average (neutral) and Bollinger Bands were 7% narrower than normal.

Open High Low Close Volume___
3,154.6503,183.5103,147.7103,183.510 267,076,080

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

Moving Averages: 10-period 50-period 200-period
Close: 3,084.52 3,079.21 3,255.54
Volatility: 16 19 16
Volume: 185,286,080 203,444,800 233,463,520

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 2.2% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .STI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 1 periods.

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