Singapore: STI Index (.STI) positive start to the week

Singapore: STI Index (.STI) positive start to the week

Singapore: STI Index (.STI) positive start to the week

Positive remarks from both the US and China on trade matters, which suggest productive negotiations between the two parties over a trade deal lifted spirits, making for a positive showing for Asian equities on Tuesday.

In Singapore, the Straits Times Index (STI) build on a positive start to the week, opening 1.1 per cent higher before pulling back on some those early gains to end at 3,160.67, a gain of 21.52 points or 0.7 per cent. Among other Asia-Pacific indices, Australia, China, Hong Kong, Japan, Malaysia and South Korea all posted gains.

The relationship and sentiment around trade talks have ebbed and flowed but IG market strategist Pan Jingyi noted that a “clear break here would be significant and likely aid in the renewal of the long-term uptrend that had been kept intact through the recent spate of trade escalation”.

That said, given how investors have been left disappointed before, it would not hurt to treat any positive development with a pinch of salt. Afterall, the roadblocks to a deal have always revolved around thorny issues.

In Singapore, trading volume stood at 1.02 billion securities, 85 per cent of the  daily average in the first nine months of 2019. Meanwhile, total turnover clocked in at S$1.14 billion, 6 per cent over the January-to-September daily average.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,218.62.

The projected lower bound is: 3,103.28.

The projected closing price is: 3,160.95.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 62.7581. This is not an overbought or oversold reading. The last signal was a sell 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 57.54. 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 37 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 179.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 buy 6 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 21.520 at 3,160.670. Volume was 11% above average (neutral) and Bollinger Bands were 57% narrower than normal.

Open     High      Low     Close     Volume___
3,153.4903,173.7003,150.2903,160.670 242,117,504
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,120.88 3,128.07 3,224.09
Volatility: 10 12 12
Volume: 202,860,800 217,255,232 213,457,280

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 gapped up today (bullish) 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 2.0% below its 200-period moving average and is in an downward trend. Volatility is 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 11 periods.

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