Singapore: STI Index (.STI) may see an extension of last week’s rally this week
The benchmark Straits Times Index (STI) may see an extension of last week’s rally this week, bolstered by gains on Wall Street on the back of a stronger-than-expected March jobs report, and hopes for a rapid conclusion to US-China trade talks.
The Dow Jones Industrial Average finished at 26,424.99, up 0.2 per cent. The broad-based S&P 500 advanced 0.5 per cent to 2,892.74, while the tech-rich Nasdaq Composite Index gained 0.6 per cent to 7,938.69. The three indices are at their 2019 peaks.
Shayne Heffernan ‘Jack’ Heffernan said: “There remains uncertainty over US-China trade negotiations, but given the trade dispute is the strongest headwind global markets have faced over the past 12 months, I think local equity markets will catch a significant updraft when the deal is finally tabled.”
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 3,226.05.
The projected upper bound is: 3,367.58.
The projected lower bound is: 3,266.84.
The projected closing price is: 3,317.21.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with STRAITS TIMES). It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 88.1625. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 25 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 69.40. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 9 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed down -7.910 at 3,314.730. Volume was 19% below average (neutral) and Bollinger Bands were 24% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,261.03 3,228.71 3,178.61
Volatility: 8 10 15
Volume: 227,799,648 214,799,120 219,936,144
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.
STRAITS TIMES is currently 4.3% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .STI (mildly bullish). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 3 periods.