Singapore: STI Index (.STI) stocks take a beating as escalating Sino-US trade tension rattles investors

Singapore: STI Index (.STI) stocks take a beating as escalating Sino-US trade tension rattles investors

Singapore: STI Index (.STI) stocks take a beating as escalating Sino-US trade tension rattles investors

Singapore shares began trading on Wednesday morning (Aug 7) in positive territory, recovering from the previous day’s losses after US stocks bounced back overnight as the yuan steadied.

The Straits Times Index rose 0.11 per cent or 3.59 points to 3,174.06 points as at 9.02am.

Gainers outpaced losers 75 to 39, after 34.7 million securities worth $81.1 million changed hands.

In the US, stocks bounced back on Tuesday, ending a multi-session losing streak as China stepped in to stem the yuan’s slide, tempering fears of a currency war.

Earlier, Wall Street’s main indices had on Monday racked up their steepest one-day percentage fall of the year. At Tuesday’s close, Singapore stocks also took a beating as escalating Sino-US trade tensions rattled investors.

The Chinese currency had slid below a key benchmark on Monday in a move seen as part of Beijing’s rebuttal to US President Donald Trump’s latest tariff threat. But the People’s Bank of China governor Yi Gang vowed on Tuesday that China would not engage in a competitive devaluation in the trade war.

In Tokyo, stocks opened lower again on Wednesday, despite Wall Street’s recovery, with investors still on edge over US-China trade ties.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3,249.47.

The projected lower bound is: 3,120.77.

The projected closing price is: 3,185.12.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 32 white candles and 17 black candles for a net of 15 white 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 12.1294. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 12 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 27.31. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 22 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 -141.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 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 21 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 14.220 at 3,184.690. Volume was 8% above average (neutral) and Bollinger Bands were 42% wider than normal.

Open     High      Low     Close     Volume___
3,171.5703,190.6603,160.9303,184.690 229,859,504
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,284.52 3,285.72 3,207.45
Volatility: 15 13 14
Volume: 233,022,432 210,398,432 210,341,232

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 0.7% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 6 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.

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