Singapore: STI Index (.STI) shares continue uptrend

Singapore: STI Index (.STI) shares continue uptrend

Singapore: STI Index (.STI) shares continue uptrend

THE positive start to the second quarter in equity markets continued to gain steam as investors in Asia cheered healthy PMI data from China and the US, growing optimism over US-China trade talks and cheap borrowing costs.

In Singapore, the Straits Times Index (STI) gained 29.27 points or 0.9 per cent to close at 3,279.78, the highest closing level in 2019.

Going by value of trades done, DBS Group Holdings saw S$150.84 million traded – 13 per cent of the bourse’s value of securities traded – across 5.82 million shares. The bank’s shares added S$0.48 or 1.9 per cent to end at S$26.07.

With markets in a buoyant mood, the other local banks also closed in positive territory. OCBC Bank closed S$0.14 or 1.3 per cent higher at S$11.35 while United Overseas Bank added S$0.32 or 1.3 per cent to close at S$25.74.

Among non-STI counters, Best World International dropped S$0.13 or 5.9 per cent to close at S$2.07. Meanwhile, Clearbridge shares surged 2.1 Singapore cents or 14.2 per cent to 16.9 cents following PhillipCapital initiating coverage on the stock with a “buy” recommendation and a target price of 28 cents. The report was produced by Phillip Securities Research under the SGX StockFacts Research Programme.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,332.61.

The projected lower bound is: 3,229.16.

The projected closing price is: 3,280.89.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 92.3473. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 21 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 65.94. 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 105 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 276.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 5 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 1 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 29.270 at 3,279.780. Volume was 2% above average (neutral) and Bollinger Bands were 42% narrower than normal.

Open High Low Close Volume___
3,269.5503,283.0103,256.0103,279.780 207,683,904

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

Moving Averages: 10-period 50-period 200-period
Close: 3,216.18 3,218.91 3,178.11
Volatility: 11 10 15
Volume: 195,686,752 208,500,656 219,356,000

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 up today (bullish) 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 3.2% above 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 22 periods.

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