Singapore: STI Index (.STI) shares close 1% lower on Thursday
SHARE prices in the Singapore bourse – alongside regional peers – were splashed in red ink on Thursday ahead of the Eid holiday, after the US Federal Reserve hiked rates and spotted a more hawkish tone in projections while rising trade fears and weak Chinese data further spooked sentiment.
The key Straits Times Index extended previous days’ losses to finish lower by 35.8 points or 1.1 per cent to at 3,356.73. Week-on-week, it’s been harsh with the index losing nearly 80 points or 2.3 per cent.
Turnover in the local bourse came in at 2.6 billion shares worth S$2.06 billion versus the previous day’s 1.48 billion shares worth S$1.21 billion as losers outpaced gainers with 277 counters down and 154 counters up.
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 3,491.09.
The projected upper bound is: 3,437.27.
The projected lower bound is: 3,276.87.
The projected closing price is: 3,357.07.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 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. The two candles preceding the falling window were black, which makes this pattern even more bearish.
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 6.3443. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 7 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 28.75. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 99 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 -199.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 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 29 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed down -35.780 at 3,356.730. Volume was 79% above average (neutral) and Bollinger Bands were 5% 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: 3,437.70 3,510.38 3,434.51
Volatility: 13 15 14
Volume: 298,980,128 262,323,536 233,288,592
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 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 2.3% below its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect moderate flows of volume out of .STI (mildly bearish). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 16 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.