Singapore: STI Index (.STI) Ministry of Trade and Industry (MTI) on Monday downgraded its growth forecast for the year to 1.5 to 2.5 per cent on the back of a weak global trade outlook
Singapore stocks opened weaker on Tuesday (May 31), with the Straits Times Index retreating 0.18 per cent or 5.62 points to 3,199.84 as at 9.02am, after tech stocks dragged Wall Street lower overnight.
Shares of tech companies sank in New York on Monday, after Google began to sever ties with Chinese telecom giant Huawei, amid the US-China trade war. The tech-rich Nasdaq Composite Index tumbled 1.5 per cent to 7,702.38, with chip companies that do business with Huawei among the hardest hit.
Closer to home in Singapore, the Ministry of Trade and Industry (MTI) on Monday downgraded its growth forecast for the year to 1.5 to 2.5 per cent on the back of a weak global trade outlook, from an earlier 1.5 to 3.5 per cent. This comes as the economy saw growth of 1.2 per cent in the first quarter of 2019, coming in a notch lower than earlier estimates of 1.3 per cent, and revised figures from Q4 2018. This was also below economists’ expectations of 1.5 per cent.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 3,248.82.
The projected lower bound is: 3,117.19.
The projected closing price is: 3,183.01.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 32 white candles and 17 black candles for a net of 15 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 6 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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 13.2391. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 3 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 29.04. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 11 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 -102.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 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 sell 11 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed down -22.200 at 3,183.260. Volume was 12% above average (neutral) and Bollinger Bands were 81% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,232.82 3,276.68 3,184.20
Volatility: 9 13 15
Volume: 192,630,912 207,172,352 215,057,776
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 gapped down today (bearish) 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 0.0% 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 7 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.