Singapore: STI Index (.STI) Renewed Support Predicted

Singapore: STI Index (.STI) Renewed Support Predicted

Singapore: STI Index (.STI) Renewed Support Predicted

The Singapore stock market on Thursday snapped the two-day winning streak in which it had advanced more than 55 points or 1.7 percent. The Strait Times Index now rests just beneath the 3,215-point plateau although it figures to rebound on Friday.

The global forecast for the Asian markets is firm on renewed optimism about and end to the trade dispute between the United States and China. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The STI finished modestly lower on Thursday as losses from the financial shares and plantation stocks were mitigated by support from the industrials.

For the day, the index sank 14.67 points or 0.45 percent to finish at 3,214.44 after trading between 3,208.88 and 3,235.14. Volume was 1.7 billion shares worth 961.41 million Singapore dollars. There were 206 decliners and 167 gainers.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 3,140.69.

The projected upper bound is: 3,309.52.

The projected lower bound is: 3,144.41.

The projected closing price is: 3,226.96.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 21 black candles for a net of 7 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 83.9358. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 18 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 65.43. 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 55 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 86. This is not a topping or bottoming area. The last signal was a sell 1 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 9 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 9.900 at 3,224.340. Volume was 23% below average (neutral) and Bollinger Bands were 55% wider than normal.

Open High Low Close Volume___
3,221.4303,233.7003,217.2403,224.340 166,160,912

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

Moving Averages: 10-period 50-period 200-period
Close: 3,181.96 3,095.95 3,249.40
Volatility: 13 17 16
Volume: 218,588,432 196,854,960 232,398,416

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 0.8% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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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