Singapore: STI Index (.STI) showing cautious optimism

Singapore: STI Index (.STI) showing cautious optimism

Singapore: STI Index (.STI) showing cautious optimism

Singapore stocks on Tuesday reversed the previous day’s losses as US economic data topped expectations and tensions eased on the trade front.

The Straits Times Index gained 0.39 per cent or 12.22 points to close at 3,155.46, in line with most Asian markets. Gainers outnumbered losers 225 to 146, or about two up for every one down, although activity remained subdued.

Total turnover was S$909.82 million, with a total of 807.03 million shares traded.

The cautious optimism comes as Chinese importers bought 600,000 tonnes of US soybeans following last week’s trade negotiations between the two economic powerhouses.

The US also confirmed Oct 7 as the date for the next round of Sino-US trade talks, with Chinese Vice-Premier Liu He due to fly to Washington.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,214.35.

The projected lower bound is: 3,088.50.

The projected closing price is: 3,151.42.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

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 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 12.2344. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 47.73. 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 17 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 -53. This is not a topping or bottoming area. The last signal was a sell 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 12.220 at 3,155.460. Volume was 11% below average (neutral) and Bollinger Bands were 19% narrower than normal.

Open     High      Low     Close     Volume___
3,161.9903,163.7503,148.5503,155.460 192,960,896
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,178.19 3,202.85 3,218.62
Volatility: 12 13 13
Volume: 201,074,560 222,174,944 210,379,696

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 2.0% below its 200-period moving average and is in an upward trend. Volatility is low 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 bullish on .STI and have had this outlook for the last 8 periods.

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