Singapore: STI Index (.STI) markets uncertain about Sino-U.S. trade deal

Singapore: STI Index (.STI) markets uncertain about Sino-U.S. trade deal

Singapore: STI Index (.STI) markets uncertain about Sino-U.S. trade deal

Asian stock markets closed mixed Tuesday, as investors watched the second day of trade negotiations between the U.S. and China.

While the midlevel talks, held in Beijing, were not expected to produce a deal, there was hope that they would lead to higher-level negotiations that could tamper down trade tensions and end the tit-for-tat tariff war. “I think there’s a very good chance that we will get a reasonable settlement that China can live with, that we can live with and that addresses all of the key issues,” U.S. Commerce Secretary Wilbur Ross said in an interview Monday, Reuters reported.

Japan’s Nikkei NIK, +0.82% finished up 0.8%, as SoftBank Group 9984, +5.68% jumped 5.7% after a Wall Street Journal report that it would scrap a $16 billion investment in U.S. startup WeWork, in favor of a smaller $2 billion investment. Nissan shares 7201, +0.21% closed up 0.2% after former Chairman Carlos Ghosn declared his innocence in a Tokyo court in his first public appearance since being arrested in November for allegedly underreporting his compensation.

Hong Kong’s Hang Seng Index HSI, +0.15% advanced 0.2%. New World Development 0017, +3.14% and Apple component-maker AAC 2018, +3.56% were among the top gainers, while Geely Automotive 0175, -11.28% plunged by 11.3% after reporting a 20% year-over-year increase in sales for 2018, but forecasting slower growth for 2019.

In mainland China, the Shanghai Composite SHCOMP, -0.26% ended 0.3% lower, while the smaller-cap Shenzhen Composite 399106, -0.12% edged down 0.1%.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,215.68.

The projected lower bound is: 3,036.23.

The projected closing price is: 3,125.96.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 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 91.8604. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 10 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 57.97. 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 47 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 239.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 20.140 at 3,122.940. Volume was 13% below average (neutral) and Bollinger Bands were 35% narrower than normal.

Open High Low Close Volume___
3,108.3803,126.6403,099.3303,122.940 186,232,400

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

Moving Averages: 10-period 50-period 200-period
Close: 3,056.59 3,071.34 3,258.11
Volatility: 18 19 16
Volume: 143,556,224 201,328,352 232,582,352

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 4.1% below its 200-period moving average and is in an downward 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 bearish on .STI and have had this outlook for the last 13 periods.

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