Singapore: STI Index (.STI) slide on worries about trade war
Singapore shares fell for a third straight session on Monday following Friday’s bond sell-off on Wall Street and Sunday’s decision by the People’s Bank of China to loosen monetary policy for a fourth time this year.
Investors saw the Chinese central bank’s decision to cut its reserve requirement ratio for targeted banks as a sign of policy makers hoping to cushion economic slowdown amid a worsening trade war with the United States.
US stocks on Friday capped the worst week in a month, as the selloff in US Treasury bonds that took yields to seven-year highs persisted amid a solid run of economic data that inflated expectations of the US Federal Reserve raising interest rates at a faster rate.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 3,248.09.
The projected lower bound is: 3,109.07.
The projected closing price is: 3,178.58.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 20 white candles and 28 black candles for a net of 8 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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 8.1739. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 7 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 43.10. 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 18 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 -103.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 5 period(s) ago.
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 down -28.340 at 3,181.450. Volume was 23% below average (neutral) and Bollinger Bands were 7% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,235.68 3,223.50 3,394.01
Volatility: 12 14 15
Volume: 206,066,320 221,952,576 244,740,496
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.
STRAITS TIMES is currently 6.3% 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 9 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.