Singapore: STI Index (.STI) positive start but worries remain over the global growth outlook

Singapore: STI Index (.STI) positive start but worries remain over the global growth outlook

Singapore: STI Index (.STI) positive start but worries remain over the global growth outlook

Singapore equities took their cue from last Friday’s encouraging performance on Wall Street to get the week off to a positive start but worries remain over the global growth outlook as well as US-China trade tensions in the lead-up to this week’s talks.

The Straits Times Index (STI) opened 0.2 per cent higher and extended those gains to close at 3,099.48, adding 21.12 points or 0.7 per cent.

Other key Asia-Pacific markets that were open mostly ended higher, with Australia, Japan, Malaysia and South Korea posting gains. Markets in China and Hong Kong will resume trading on Tuesday.

Even though last Friday’s US jobs report, which showed unemployment in the US economy fell to a 50-year low of 3.5 per cent, eased recesssion fears, US growth has definitely eased, with expectations that the Federal Reserve will make two more rate cuts this year.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 3,162.30.

The projected upper bound is: 3,159.54.

The projected lower bound is: 3,028.15.

The projected closing price is: 3,093.84.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black 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 21.7154. This is not an overbought or oversold reading. The last signal was a buy 0 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 40.89. 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 26 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 -94. This is not a topping or bottoming area. The last signal was a buy 0 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 9 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 21.120 at 3,099.480. Volume was 21% below average (neutral) and Bollinger Bands were 21% narrower than normal.

Open     High      Low     Close     Volume___
3,082.6603,104.1103,079.9003,099.480 169,939,200
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,116.80 3,157.27 3,219.93
Volatility: 12 13 12
Volume: 193,298,352 222,950,224 210,234,080

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 3.7% 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 0 periods.

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