Singapore: STI Index (.STI) plunge as trade tensions continue to spook investors
The local market joined other key bourses across the region yesterday to close at levels not seen for more than a year as trade tensions continued to unnerve investors.
The Straits Times Index here fell for the fifth straight session to close at 3,109.91, its lowest point in 18 months. It lost 11.01 points or 0.35 per cent, with turnover of 1.5 billion shares worth $865.6 million. Losers outnumbered gainers 249 to 138.
“We are largely staring at the same few factors driving regional markets lower,” said IG market strategist Pan Jingyi. “The key item remains the worries over incoming tariff escalations between US and China, alongside the comparative disadvantage that Asia markets are expected to face in the light of this threat.”
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 3,262.57.
The projected upper bound is: 3,181.97.
The projected lower bound is: 3,032.68.
The projected closing price is: 3,107.33.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 21 white candles and 28 black candles for a net of 7 black candles.
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 11.3608. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 13 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 27.27. 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 buy 45 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 -135.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 4 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed down -11.010 at 3,109.910. Volume was 27% below average (neutral) and Bollinger Bands were 1% narrower 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: 3,177.00 3,247.53 3,414.61
Volatility: 9 15 15
Volume: 220,833,712 232,240,016 243,325,248
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 8.9% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume out of .STI (mildly bearish). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 16 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.
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