Singapore: STI Index (.STI) racks up five-day losing streak

Singapore: STI Index (.STI) racks up five-day losing streak

Singapore: STI Index (.STI) racks up five-day losing streak

Regional markets were mixed yesterday as worries over global growth kept investors cautious.

The concern stemmed from the International Monetary Fund’s move to cut its global economic growth forecast for the first time in over two years, to 3.7 per cent from 3.9 per cent for this year and next.

The reactions varied, with the Nikkei in Japan ending up 0.16 per cent after four days of losses, while Hong Kong’s Hang Seng broke a six-session losing streak to rise 0.08 per cent and Australia’s ASX 200 advanced 0.14 per cent. Shanghai shares added 0.18 per cent while Shenzhen stocks retreated 0.15 per cent.

Singapore’s Straits Times Index (STI) racked up a five-day losing streak, falling 35.12 points, or 1.11 per cent, to 3,131.48. Losers beat gainers 302 to 119 on trade of 1.6 billion shares worth $1.1 billion.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3,198.09.

The projected lower bound is: 3,057.33.

The projected closing price is: 3,127.71.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 19 white candles and 29 black candles for a net of 10 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 2.8878. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 9 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 35.11. 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 20 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 -197.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 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 2 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -35.120 at 3,131.480. Volume was 5% above average (neutral) and Bollinger Bands were 3% narrower than normal.

Open High Low Close Volume___
3,169.3303,169.5703,129.5003,131.480 246,192,496

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

Moving Averages: 10-period 50-period 200-period
Close: 3,217.97 3,216.93 3,391.49
Volatility: 12 14 15
Volume: 216,478,864 221,731,152 245,548,592

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 7.7% below its 200-period moving average and is in an upward 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 bullish on .STI and have had this outlook for the last 11 periods.

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