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Singapore: STI Index (.STI) sinks 3.2% amid global worries over Covid-19 spread

Singapore: STI Index (.STI) sinks 3.2% amid global worries over Covid-19 spread

Singapore stocks plunged to a 15-month low, which suggests that the global markets are increasingly convinced of the possibility that the Covid-19 outbreak will result in a pandemic.

After reaching a 15-month low at 3,008.460, the benchmark Straits Times Index (STI) fell by 3.2 per cent to close at 3,011.08.

This also shows that the winners are overtaken by losers at 103 to 406.

On Friday as well, the carrier Singapore Airlines stated that the pay for its senior workers will be slashed 15 per cent even as its stocks declined by 3.85 per cent.

Last week, the earlier optimism that the outbreak will be successfully contained in China has now been supplanted by the worries that the outbreak is now transmitting globally across countries.

The efforts poured into implementing measures to combat the virus have crippled the global financial markets, the economy and the supply chains.

Aside from Singapore, other international bourses that also experienced a decline of more than 3 per cent are Seoul, Tokyo, Sydney and Shanghai.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 3,172.71.

The projected upper bound is: 3,081.80.

The projected lower bound is: 2,925.39.

The projected closing price is: 3,003.59.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 23 black candles for a net of 1 white 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 10.4427. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 9 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 25.46. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 19 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 -183.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 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 5 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -3.360 at 3,007.720. Volume was 40% above average (neutral) and Bollinger Bands were 101% wider than normal.

Open     High      Low     Close     Volume___
2,988.3503,026.2302,987.4103,007.720 358,472,608
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,133.85 3,204.58 3,206.08
Volatility: 20 16 13
Volume: 291,613,376 221,595,696 231,377,760

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 6.2% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 24 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.

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