Singapore: STI Index (.STI) slide as renewed fears of a global economic slowdown

Singapore: STI Index (.STI) slide as renewed fears of a global economic slowdown

Singapore: STI Index (.STI) slide as renewed fears of a global economic slowdown

Singapore shares deepened its slide on Wednesday afternoon (Oct 2), as a shock slump in US manufacturing activity spooked investors and renewed fears of a global economic slowdown. 

The Straits Times Index sank 1.2 per cent, or 39.15 points to 3,106.88 as at 1pm, following the midday break.

This comes after Wall Street stocks sank overnight, as the disappointing US manufacturing data stoked fears that the US economy could soon tip into recession. The broad-based S&P 500 shed 1.2 per cent, notching its biggest one-day fall since August, while the Dow Jones Industrial Average ended down 1.3 per cent, and the tech-rich Nasdaq Composite Index fell 1.1 per cent.

On the Singapore Exchange, decliners outnumbered advancers 207 to 95, on a churn of about 332.1 million shares worth $388.3 million. 

Among the most heavily traded by volume, Yangzijiang Shipbuilding plummeted 5.5 per cent, or 5.5 cents to 94.5 cents, with 55.4 million shares traded, while Golden Agri-Resources tumbled 2.2 per cent, or 0.5 cent to 22.5 cents, with 34.6 million shares traded. 

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 3,170.35.

The projected upper bound is: 3,164.02.

The projected lower bound is: 3,032.73.

The projected closing price is: 3,098.37.

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 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 40.1125. 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 39.04. 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 23 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 -113.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 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 sell 6 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -42.580 at 3,103.450. Volume was 26% above average (neutral) and Bollinger Bands were 41% narrower than normal.

Open     High      Low     Close     Volume___
3,122.3403,131.1103,095.8003,103.450 274,571,104
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,136.39 3,174.41 3,219.70
Volatility: 11 13 13
Volume: 203,664,288 224,961,408 210,675,776

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 3.6% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 14 periods.

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