Singapore: STI Index (.STI) posts biggest weekly gain in 12 weeks

Singapore: STI Index (.STI) posts biggest weekly gain in 12 weeks

Singapore: STI Index (.STI) posts biggest weekly gain in 12 weeks

Southeast Asian stock markets were rangebound on Friday as mixed reports about progress on a trade deal between Washington and Beijing left investors cautious about taking on more risk.

U.S. President Donald Trump on Thursday said the United States and China were close to a trade deal that could be announced within four weeks, while warning Beijing that it would be difficult to allow trade to continue without a pact.

Also under the investor radar is the U.S. payrolls report, which is forecast to rebound to 180,000 in March, following February’s distorted 20,000 rise, which points to stronger labour market strength amid concerns of economic risks.

Philippine stocks rebounded from previous session’s losses to end higher, with gains concentrated in the financial sector. For the week, however, the index posted a 0.6 percent fall.

The Singapore benchmark index closed higher, boosted by gains in financials. Top lenders extended their strength with DBS Group Holdings Ltd, Oversea-Chinese Bankin Corporation Ltd, and United Overseas Bank Ltd climbing between 0.4 percent and 0.7 percent.

The index posted a 3.4 percent gain for the week, its highest weekly gain in 12.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 3,219.82.

The projected upper bound is: 3,376.35.

The projected lower bound is: 3,275.00.

The projected closing price is: 3,325.67.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is 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 92.9258. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 24 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 72.28. This is where it usually tops. 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 108 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 145.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 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 4 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 6.430 at 3,322.640. Volume was 19% above average (neutral) and Bollinger Bands were 16% wider than normal.

Open High Low Close Volume___
3,317.1103,332.5903,316.6603,322.640 246,233,328

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 3,247.85 3,226.23 3,178.34
Volatility: 11 10 15
Volume: 230,221,632 215,971,520 220,281,408

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 4.5% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. 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 2 periods. Our momentum oscillator is currently indicating that .STI is currently in an overbought condition.

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