Singapore: STI Index (.STI) slowdown as tech stocks plunged

Singapore: STI Index (.STI) slowdown as tech stocks plunged

Singapore: STI Index (.STI) slowdown as tech stocks plunged

It was looking like a week of wound-licking for Asian stocks. Then crude oil entered a bear market and alarm bells rang on China’s slowdown as tech stocks plunged. Just like that, the region’s equity benchmark erased weekly gains and posted its sixth slide in seven weeks. The MSCI Asia Pacific Index slumped 1.2 percent Friday, worsening the wipeout that already erased $4.3 trillion of market value this year.

It’s anyone’s guess how regional stock markets will do on Monday but it isn’t looking good right now: the S&P 500 Index dropped 0.9 percent Friday and futures contracts on the Nikkei 225 fell.

Of note: energy companies were, by far, the biggest decliners, followed by tech shares as Tencent Holdings sank almost 5 percent. Watch for its quarterly results next week — analysts expect the giant will report its slowest revenue increase in more than three years.

Alibaba will hold its annual Singles’ Day online-shopping event on Nov. 11. China money supply and new-yuan loans data will be released any time through Nov. 15. Asean Summit begins in Singapore, with leaders from 10 member countries, along with China, the U.S., Japan and Russia. Japan GDP and industrial production data are due Nov. 14. Companies including Tencent, Mitsubishi UFJ Financial, Want Want China, Singapore Airlines will report earnings next week.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3,159.09.

The projected lower bound is: 2,990.94.

The projected closing price is: 3,075.01.

Candlesticks

A black body occurred (because prices closed lower 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 22 white candles and 27 black candles for a net of 5 black candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 5 falling windows in the last 50 candles–this makes the current falling window even more bearish.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 55.7888. This is not an overbought or oversold reading. The last signal was a sell 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 49.40. 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 6 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 59. This is not a topping or bottoming area. The last signal was a sell 3 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 5 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -15.270 at 3,077.970. Volume was 14% above average (neutral) and Bollinger Bands were 17% narrower than normal.

Open High Low Close Volume___
3,078.3803,079.4103,059.2003,077.970 267,129,600

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

Moving Averages: 10-period 50-period 200-period
Close: 3,041.32 3,128.31 3,340.27
Volatility: 23 17 16
Volume: 256,999,568 237,057,232 250,618,960

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
STRAITS TIMES is currently 7.9% 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 20 periods.

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