Singapore: STI Index (.STI) Tipped To Bounce Higher Again

Singapore: STI Index (.STI) Tipped To Bounce Higher Again

Singapore: STI Index (.STI) Tipped To Bounce Higher Again

The Singapore stock market turned lower again on Monday, one session after it had snapped the three-day losing streak in which it had dropped almost 70 points or 2.1 percent. The Straits Times Index now rests just above the 3,220-point plateau although it’s expected to rebound on Tuesday.

The global forecast for the Asian markets is upbeat on renewed optimism for a trade deal between the United States and China. The European and U.S. markets were up and the Asian bourses figure to follow that lead.

The STI finished slightly lower on Monday following losses from the financial shares and property stocks, while the industrials were mixed.

For the day, the index sank 5.02 points or 0.16 percent to finish at 3,220.63 after trading between 3,218.25 and 3,244.69. Volume was 1.36 billion shares worth 1.14 billion Singapore dollars. There were 202 decliners and 167 gainers.

The lead from Wall Street is positive as stocks showed a strong move to the upside on Monday, sending the major averages to fresh record closing highs.

The Dow added 190.85 points or 0.68 percent to 28,066.47, while the NASDAQ spiked 112.60 points or 1.32 percent to finish at 8,632.49 and the S&P 500 rose 23.35 points or 0.75 percent to 3,133.64.

The strength on Wall Street reflected continued optimism about a U.S.-China trade agreement after a tabloid run by China’s ruling Communist Party discounted “negative” media reports and said the economic superpowers are “very close” to a phase one deal.

News on the merger-and-acquisition front also generated positive sentiment, as the deals suggest companies remain confident even with the uncertainty created by the U.S.-China trade dispute.

Crude oil prices moved higher Monday as worries about energy demand subsided after positive comments from the U.S. and China raised optimism about a deal between the two countries. West Texas Intermediate crude oil futures for January ended up $0.24 at $58.01 a barrel.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,263.63.

The projected lower bound is: 3,153.06.

The projected closing price is: 3,208.35.

Candlesticks

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 22 white candles and 27 black candles for a net of 5 black 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 46.5458. This is not an overbought or oversold reading. The last signal was a buy 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 48.69. 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 12 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 -92. This is not a topping or bottoming area. 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 8 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -12.780 at 3,207.850. Volume was 486% above average (trending) and Bollinger Bands were 50% narrower than normal.

Open     High      Low     Close     Volume___
3,226.3903,234.7403,207.8503,207.8501,409,118,336
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,228.36 3,175.09 3,228.62
Volatility: 12 11 12
Volume: 394,426,784 248,891,840 225,018,848

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 0.6% below its 200-period moving average and is in an upward trend. Volatility is 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 21 periods.

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