Singapore: STI Index (.STI) Stock Market May Extend Losing Streak

Singapore: STI Index (.STI) Stock Market May Extend Losing Streak

Singapore: STI Index (.STI) Stock Market May Extend Losing Streak

The Singapore stock market has finished lower in two straight sessions, surrendering more than 20 points or 06 percent along the way. The Straits Times Index now rests just beneath the 3,195-point plateau and it may take further damage again on Monday.

The global forecast for the Asian markets is negative thanks to unrest in Hong Kong and how it may delay any resolution in the trade spat between the United States and China. The European and U.S. markets were down on Friday and the Asian bourses are tipped to open in similar fashion.

The STI finished slightly lower on Friday as losses from the financials and industrials were tempered by support from the plantation stocks.

For the day, the index dipped 6.69 points or 0.21 percent to finish at 3,193.92 after trading between 3,182.05 and 3,199.25. Volume was 1.05 billion shares worth 1.24 billion Singapore dollars. There were 188 decliners and 167 gainers.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,243.72.

The projected lower bound is: 3,134.01.

The projected closing price is: 3,188.86.

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 26 black candles for a net of 3 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 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 12.4342. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 6 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 44.39. 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 sell 16 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 -114.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 12 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -5.950 at 3,187.970. Volume was 8% below average (neutral) and Bollinger Bands were 39% narrower than normal.

Open     High      Low     Close     Volume___
3,198.2703,208.7003,184.7703,187.970 225,065,200
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,211.30 3,178.48 3,227.60
Volatility: 10 11 12
Volume: 407,638,656 256,102,640 226,230,848

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 1.2% below 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 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 2 periods.

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