Singapore: STI Index (.STI) shares add 0.3% as Fed chief reaffirms dovish stance

Singapore: STI Index (.STI) shares add 0.3% as Fed chief reaffirms dovish stance

Singapore: STI Index (.STI) shares add 0.3% as Fed chief reaffirms dovish stance

The local equities market, like most others, has been in a limbo since last Friday’s US jobs data exceeded expectations, sending investors second-guessing the extent of rate cuts by the US Federal Reserve.

On Thursday, they were reassured of the Fed’s dovishness, which translated to a risk-on session in Asia.

The Straits Times Index (STI) gained 10.03 points or 0.3 per cent to close at 3,350.45 on Thursday.

Following the testimony, which market watchers said signalled a confirmation of a rate cut of at least 25 basis points (bps) in July, other markets in the Asia-Pacific, including Australia, China, Japan, Hong Kong and South Korea, closed higher.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 3,278.69.

The projected upper bound is: 3,419.92.

The projected lower bound is: 3,278.99.

The projected closing price is: 3,349.45.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 31 white candles and 18 black candles for a net of 13 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 33.6388. This is not an overbought or oversold reading. The last signal was a sell 3 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 63.24. 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 sell 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 53. This is not a topping or bottoming area. The last signal was a sell 4 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 up 10.030 at 3,350.450. Volume was 7% below average (neutral) and Bollinger Bands were 4% wider than normal.

Open High Low Close Volume___
3,353.8103,372.4903,349.6303,350.450 197,313,600

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

Moving Averages: 10-period     50-period     200-period
Close: 3,352.61 3,253.95 3,191.36
Volatility: 11 14 15
Volume: 217,766,528 211,767,728 213,334,752

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 5.0% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .STI (mildly bullish). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 17 periods.

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