Singapore: STI Index (.STI) rebound on Wall Street likely to provide a lift to local sentiment today
Wall Street’s rebound could fuel gains today.
The Straits Times Index ended 11.66 or 0.38% points lower at 3,041.31.
The top active stocks were DBS, which dipped 0.24%, OCBC, which slipped 0.08%, UOB, which rose 0.15%, Singtel, which closed unchanged, and Genting Sing, with a 0.02% fall.
The FTSE Mid Cap Index slipped 0.70% whilst the FTSE Small Cap Index climbed 1.02%.
According to OCBC Investment Research, stocks closed higher, with the Dow Jones Industrial Average rallying nearly 550 points on upbeat earnings and robust economic data, marking the biggest one-day percentage gain for major indexes since late March.
All eleven S&P 500 industries ended higher, led by Information Technology (3.02%) and Healthcare (2.90%).
“The rebound on Wall Street overnight is likely to provide a lift to local sentiment today,” OCBC Investment Research said.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 3,188.47.
The projected upper bound is: 3,140.01.
The projected lower bound is: 2,991.44.
The projected closing price is: 3,065.72.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 1 white candles and 9 black candles for a net of 8 black candles. During the past 50 bars, there have been 18 white candles and 30 black candles for a net of 12 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.
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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 15.9360. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 14 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 35.84. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -74. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.
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 up 36.790 at 3,071.100. Volume was 20% above average (neutral) and Bollinger Bands were 67% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,118.89 3,192.16 3,380.84
Volatility: 19 15 15
Volume: 256,831,232 228,979,872 247,613,808
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.
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 9.2% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 4 periods.
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