Singapore: STI Index (.STI) traders await central bank meetings
Asian equities drifted Tuesday as traders awaited central bank meetings amid expectations of dovish signals to monetary policy. The dollar steadied after its recent decline.
Stocks posted modest losses in Japan and China and were little changed in Australia and Hong Kong. U.S. futures were little changed after the S&P 500 Index climbed to a five-month high Monday. European contracts edged higher. The pound pared losses that came after the speaker of Parliament blocked another vote on Prime Minister Theresa May’s current Brexit plan. The yield on 10-year Treasuries hovered around 2.6 percent.
The Federal Reserve is likely to hold interest rates at its policy meeting, waiting until the third quarter before raising rates once more, according to a Reuters poll.
The Indonesian index was the worst hit in the region, dipping 0.4 percent. Consumer stocks led declines as Bank Indonesia is expected to keep rates on hold at their meeting on Thursday despite the country recording the lowest inflation in nearly a decade.
“Current economic data is still not immediately supportive
of a cut given that the trade situation remains fragile,” a note from OCBC had said.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 3,277.58.
The projected lower bound is: 3,164.44.
The projected closing price is: 3,221.01.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 63.5701. This is not an overbought or oversold reading. The last signal was a buy 11 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 50.64. 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 95 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 -3. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 14 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed up 4.880 at 3,217.840. Volume was 9% below average (neutral) and Bollinger Bands were 26% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,207.64 3,212.01 3,187.19
Volatility: 9 11 15
Volume: 204,229,408 212,059,552 222,985,504
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.
STRAITS TIMES is currently 1.0% above its 200-period moving average and is in an downward trend. Volatility is low 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 12 periods.