Singapore: STI Index (.STI) sole loser, banks and real estate weigh

Singapore: STI Index (.STI) sole loser, banks and real estate weigh

Singapore: STI Index (.STI) sole loser, banks and real estate weigh

Most Southeast Asian stocks closed higher in lacklustre trade on Wednesday, while Singapore slipped as caution prevailed ahead of China’s industrial output data.

Singapore stocks were the sole losers in the region, ending 0.5 percent lower. China’s January-February industrial output and retail sales data is due on Thursday.

With recent gloomy economic data arising out of the world’s second-largest economy, Singapore’s market appeared to grapple with concerns about slowing global growth and trade.

“In the end, you still go back to fundamentals, and that is slowing trade and slowing economies. Expectations are not at a high level for Chinese data… I think there’s some cautiousness ahead of that,” said Joel Ng, an analyst at KGI Securities.

Among top losers were lender DBS Group Holdings Ltd that slid 1.3 percent and food retailer Dairy Farm International Holdings Ltd which slumped nearly 4 percent.

Most markets in the region staged a recovery, led by Thailand, just before the bell after trading weaker through the session.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,260.83.

The projected lower bound is: 3,136.03.

The projected closing price is: 3,198.43.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 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 3 falling windows in the last 50 candles–this makes the current falling window even more 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 26.5567. This is not an overbought or oversold reading. The last signal was a buy 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 44.40. 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 91 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 10 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -16.660 at 3,195.590. Volume was 13% below average (neutral) and Bollinger Bands were 30% narrower than normal.

Open High Low Close Volume___
3,209.0503,209.0503,183.7203,195.590 178,496,208

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

Moving Averages: 10-period 50-period 200-period
Close: 3,216.57 3,199.02 3,192.08
Volatility: 12 13 15
Volume: 208,442,224 207,249,680 228,688,368

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 0.1% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .STI (mildly bearish). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 8 periods.

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