Singapore: STI Index (.STI) PMI down 0.4 point to 50.7 in January

Singapore: STI Index (.STI) PMI down 0.4 point to 50.7 in January

Singapore: STI Index (.STI) PMI down 0.4 point to 50.7 in January

The growth of new orders, new exports and factory output slowed down.

The Singapore Purchasing Manager’s Index (PMI) recorded a further 0.4 point drop from the previous month to a slower expansion at 50.7 in January, according to the Singapore Institute of Purchasing and Materials Management (SIPMM).

The lower reading was attributed to slower growth recorded in the new orders, new exports, factory output, inventory and employment levels. SIPMM also revealed that January’s numbers, which mark a fifth month of decline, were the lowest recorded reading since December 2016 that saw a reading of 50.6.

“A reading of the Singapore PMI above 50 indicates that the manufacturing economy is generally expanding and that the economy is generally declining when the reading falls below 50,” SIPMM explained.

Amidst slower growth readings for indexes of finished goods, imports, input prices and supplier deliveries, the employment index recorded its 17th month of consecutive expansion, SIPMM highlighted.

Meanwhile, the electronics sector PMI recorded a decline of 0.2 points from the previous month to record a third month of contraction at 49.6 in January, data showed. SIPMM blamed the weak reading to the first-time contraction in new orders, new exports and employment, on top of a second decline in factory output.

Lower rates of expansion were also recorded for the indexes of inventory, finished goods, input prices and supplier deliveries. The order backlog index continued to decline for the ninth consecutive month, whilst the electronics imports index posted its second-time contraction.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,268.30.

The projected lower bound is: 3,106.10.

The projected closing price is: 3,187.20.

Candlesticks

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 25 white candles and 24 black candles for a net of 1 white candles.

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 40.7542. This is not an overbought or oversold reading. The last signal was a buy 6 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 54.89. 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 66 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 -51. This is not a topping or bottoming area. The last signal was a sell 12 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 sell 7 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -4.120 at 3,184.560. Volume was 57% below average (consolidating) and Bollinger Bands were 53% narrower than normal.

Open High Low Close Volume___
3,192.3603,197.9603,182.1703,184.560 90,949,904

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

Moving Averages: 10-period 50-period 200-period
Close: 3,188.18 3,125.89 3,230.88
Volatility: 9 17 15
Volume: 195,621,776 198,120,192 231,135,872

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 1.4% below its 200-period moving average and is in an upward 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 into .STI (mildly bullish). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 18 periods.

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