Singapore: STI Index (.STI) shares join regional slide

Singapore: STI Index (.STI) shares join regional slide

Singapore: STI Index (.STI) shares join regional slide

The days leading up to the US-China trade talks have seen more mines scattered along the road towards a resolution. And if the effect of which wasn’t noticeable during Tuesday’s Asia session, it was certainly felt on Wednesday.

Singapore’s Straits Times Index (STI) started the day 0.4 per cent lower before closing at 3,089.90, a retreat of 20.95 points or 0.7 per cent.

Most other Asia-Pacific markets fared similarly, with benchmark indices in Australia, Japan, Hong Kong, Malaysia and South Korea ending lower. Bucking the trend was China, which was lifted by banks and real estate firms. The Shanghai Composite Index added 11.29 points or 0.4 per cent to finish at 2,924.86.

Following news on Monday of the US imposing commercial restrictions on 28 Chinese entities due to the “repression” of Muslims in China’s Xinjiang province, Beijing has said it will retaliate.

The issues have gotten thornier after Washington said it would curb visas for Chinese officials, and reports claiming discussions around restricting capital flows into China have resumed.

In Singapore, trading volume stood at 899.66 million securities, three-quarter of the daily average in the first eight months of 2019. Meanwhile, total turnover clocked in at S$936.54 million, 87 per cent of the January-to-August daily average.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 3,160.55.

The projected upper bound is: 3,150.78.

The projected lower bound is: 3,018.76.

The projected closing price is: 3,084.77.

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 23 white candles and 27 black candles for a net of 4 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 45.6222. 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 39.86. 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 28 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 -84. This is not a topping or bottoming area. The last signal was a buy 2 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 11 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -20.950 at 3,089.900. Volume was 14% above average (neutral) and Bollinger Bands were 20% narrower than normal.

Open     High      Low     Close     Volume___
3,097.9603,102.7503,084.2003,089.900 245,802,800
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,108.75 3,147.08 3,220.45
Volatility: 12 13 13
Volume: 198,901,056 225,947,120 209,944,080

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 4.1% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 2 periods.

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