Singapore: STI Index (.STI) shares edged down following differing reactions in the US and Europe markets

Singapore: STI Index (.STI) shares edged down following differing reactions in the US and Europe markets

Singapore: STI Index (.STI) shares edged down following differing reactions in the US and Europe markets

Singapore shares edged down on Friday morning following differing reactions in the US and Europe markets over a draft agreement on Brexit, with US stocks gaining ground but Europe closing slightly lower.

Amid a tentative opening on the exchange, the Straits Times Index lost 3.24 points or 0.1 per cent to 3,122.90 as at 9.04am.

About 29.5 million shares worth about S$38.3 million changed hands, which worked out to an average unit price of about S$1.30 per share.

Wall Street stocks rose on Thursday after Britain and the European Union (EU) announced a new Brexit deal, with additional boosts from Netflix and Morgan Stanley’s solid earnings.

Analysts welcomed news that British Prime Minister Boris Johnson reached a draft divorce deal with EU leaders that amends the prior agreement’s provisions on the border between Northern Ireland and the Republic of Ireland.

The US market shrugged off opposition to the draft deal from Northern Ireland’s Democratic Unionist Party, which could potentially sink the agreement.

The Dow Jones Industrial Average added 0.1 per cent, closing at 27,025.88. The broad-based S&P 500 climbed 0.3 per cent to 2,997.95, while the tech-rich Nasdaq Composite Index advanced 0.4 per cent to 8,156.85.

European shares edged lower as strong earnings from Sweden’s Ericsson were offset by fading optimism over the Brexit deal amid investor worries about its support in the British parliament.

The pan-European Stoxx 600 index closed down 0.1 per cent after initially gaining as much as 0.9 per cent.

Elsewhere in Asia, Tokyo opened higher with the benchmark Nikkei 225 index up 0.45 per cent or 100.87 points at 22,552.73, while the broader Topix index was up 0.29 per cent or 4.75 points to 1,628.91.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3,169.72.

The projected lower bound is: 3,055.78.

The projected closing price is: 3,112.75.

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 28 black candles for a net of 6 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 61.4141. This is not an overbought or oversold reading. The last signal was a sell 1 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 46.67. 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 35 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 33. 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 4 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -11.980 at 3,114.160. Volume was 18% below average (neutral) and Bollinger Bands were 58% narrower than normal.

Open     High      Low     Close     Volume___
3,128.8603,128.8603,108.9303,114.160 177,859,936
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,111.93 3,128.38 3,222.95
Volatility: 9 12 12
Volume: 194,778,784 217,070,144 213,040,320

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 3.4% 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 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 9 periods.

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