Singapore: STI Index (.STI) shares slip as oil tumbles

Singapore: STI Index (.STI) shares slip as oil tumbles

Singapore: STI Index (.STI) shares slip as oil tumbles

The key stock index had declined 20% this year as of Tuesday, making it the worst performer in Southeast Asia.

Indonesian shares closed higher for a second straight session with material and consumer stocks dominating the gains.

“It is more of a technical rebound than a firm recovery. Yesterday’s oil plunge served as a good catalyst for today’s market rebound as Indonesia is an importer of oil,” said Taye Shim, head of research at Mirae Asset Sekuritas.

Oil markets fell again on Wednesday, extending losses from a 7% plunge the previous session as surging supply and the spectre of faltering demand scared off investors.

Index heavyweight Astra International Tbk PT and cement manufacturer Semen Indonesia (Persero) Tbk PT climbed 2.2% and 9.3%, respectively.

Malaysian shares closed flat with Malaysia Airports Holdings Bhd slipping 1.1% and palm company IOI Corp Bhd edging up 0.7%.

Singapore shares closed 0.3% lower with conglomerate Keppel Corp Ltd shedding 1.4%, while City Developments Ltd, the country’s second-largest property developer, dropped 1.9%.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3,124.02.

The projected lower bound is: 2,955.67.

The projected closing price is: 3,039.84.

Candlesticks

A black body occurred (because prices closed lower 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 22 white candles and 27 black candles for a net of 5 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 30.5987. This is not an overbought or oversold reading. The last signal was a sell 5 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 44.50. 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 9 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 4. This is not a topping or bottoming area. The last signal was a sell 6 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 8 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -10.410 at 3,043.190. Volume was 12% below average (neutral) and Bollinger Bands were 16% narrower than normal.

Open High Low Close Volume___
3,049.3103,053.3203,031.4703,043.190 204,149,696

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

Moving Averages: 10-period 50-period 200-period
Close: 3,065.82 3,118.98 3,333.04
Volatility: 21 17 16
Volume: 243,482,176 233,722,848 248,510,336

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 8.7% below its 200-period moving average and is in an downward trend. Volatility is high 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 23 periods.

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