Singapore: STI Index (.STI) renewed capital flight worries

Singapore: STI Index (.STI) renewed capital flight worries

Singapore: STI Index (.STI) renewed capital flight worries

Most Southeast Asian stock markets slumped on Thursday as positive economic data drove US Treasury yields up and raised the chances of a December rate hike, sending jitters through the region.

Shares in Indonesia and Singapore plunged to their lowest in nearly four weeks and one week, respectively.

The upbeat report will likely keep the US Federal Reserve on track to raise interest rates again in December, after hiking rates last week for the third time this year. However, higher US yields are not favourable for emerging markets as they tend to draw away much-needed foreign funds while pressuring local currencies.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,297.84.

The projected lower bound is: 3,161.53.

The projected closing price is: 3,229.69.

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 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 27 black candles for a net of 6 black candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 3 falling windows in the last 50 candles–this makes the current falling window even more 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 41.5707. This is not an overbought or oversold reading. The last signal was a sell 5 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 53.53. 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 16 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 35. This is not a topping or bottoming area. 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 12 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -35.810 at 3,231.590. Volume was 9% below average (neutral) and Bollinger Bands were 17% wider than normal.

Open High Low Close Volume___
3,246.9703,248.5303,226.8603,231.590 224,805,680

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

Moving Averages: 10-period 50-period 200-period
Close: 3,240.24 3,228.75 3,395.90
Volatility: 12 13 15
Volume: 225,284,640 222,666,992 243,922,608

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 down today (bearish) 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 4.8% below 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 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 7 periods.

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