Singapore: STI Index (.STI) marking a three-week closing high

Singapore: STI Index (.STI) marking a three-week closing high

Singapore: STI Index (.STI) marking a three-week closing high

Southeast Asian stock markets rose on Monday, with Singapore marking a three-week closing high, as the start of Sino-US trade talks raised hopes that a deal would alleviate concerns about slowing global economic growth.

US officials are meeting their Chinese counterparts in Beijing for trade negotiations starting later on Monday. This comes a day after US President Donald Trump said that trade talks with China were going very well and that weakness in the Chinese economy gave Beijing a reason to work toward a deal.

“Any development when it comes to the trade talks will be a positive factor for overall markets, especially for markets which have been directly affected by the trade war,” said Miguel Ong, a research analyst with AP Securities.

However, news of a US navy ship sailing in the disputed South China Sea earlier in the day marred signs of easing relations between the world’s top two economies.

Meanwhile, US Federal Reserve Chairman Jerome Powell on Friday took a more accommodative stance and said the Fed was aware of the risks to the US economy and would be patient and flexible in policy decisions, boosting market sentiment across the globe.

Overall, the bias in prices is: Sideways

By the way, prices are vulnerable to a correction towards 3,111.17.

The projected upper bound is: 3,195.87.

The projected lower bound is: 3,013.33.

The projected closing price is: 3,104.60.

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 26 white candles and 23 black candles for a net of 3 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 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 9 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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.

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 67.0047. This is not an overbought or oversold reading. The last signal was a buy 9 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 55.41. 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 46 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 246.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 1 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 0 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 43.570 at 3,102.800. Volume was 13% above average (neutral) and Bollinger Bands were 42% narrower than normal.

Open High Low Close Volume___
3,101.2603,104.3203,084.8803,102.800 245,440,640

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

Moving Averages: 10-period 50-period 200-period
Close: 3,049.40 3,068.32 3,259.41
Volatility: 18 19 16
Volume: 132,560,552 204,103,408 232,882,448

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 4.8% 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 12 periods.

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