Singapore: STI Index (.STI) Set to Open Higher

Singapore: STI Index (.STI) Set to Open Higher

Singapore: STI Index (.STI) Set to Open Higher

China’s main Shanghai Composite index fell to its lowest close in nearly four years on Monday as reports said U.S. President Donald Trump would unveil new tariffs on $200 billion of imported Chinese goods this week.

The Shanghai Composite index dropped 1.1 per cent to 2,651.79 points, its worst close since Nov. 27, 2014. The blue-chip CSI300 index also declined 1.1 per cent, to 3,204.92 points.

A senior official in the Trump administration told Reuters that Trump would announce the new tariffs as early as Monday. China has vowed to retaliate to any new U.S tariff action, and may decline to participate in further talks if new tariffs are announced.

The anticipated new tariffs, reported to be 10 per cent, may cover a wide range of items including internet technology products and other electronics, printed circuit boards and consumer goods including Chinese seafood, furniture and lighting products, tires, chemicals, plastics, bicycles and car seats for babies, according to a list of items announced in July.

Trump directed aides to proceed with the new tariffs despite Treasury Secretary Steven Mnuchin’s attempts to restart trade talks with China.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 3,243.66.

The projected upper bound is: 3,211.82.

The projected lower bound is: 3,068.96.

The projected closing price is: 3,140.39.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 27 black candles for a net of 5 black candles.

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 79.2276. This is not an overbought or oversold reading. The last signal was a buy 2 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 38.56. 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 3 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 -42. This is not a topping or bottoming area. The last signal was a buy 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 sell 8 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -20.020 at 3,141.400. Volume was 46% below average (neutral) and Bollinger Bands were 8% wider than normal.

Open High Low Close Volume___
3,149.7103,150.8303,133.3703,141.400 136,272,400

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 3,143.89 3,240.13 3,408.61
Volatility: 13 14 15
Volume: 200,760,352 226,031,184 241,763,680

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 7.8% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 bearish on .STI and have had this outlook for the last 20 periods.

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