Singapore: STI Index (.STI) U.S. proposed a new round of trade negotiations with China

Singapore: STI Index (.STI) U.S. proposed a new round of trade negotiations with China

Singapore: STI Index (.STI) U.S. proposed a new round of trade negotiations with China

Asian markets were mostly higher on Thursday after a report that the U.S. had proposed a new round of trade negotiations with China quelled fears that a dispute between the world’s two largest economies was spiraling out of control.

According to the Wall Street Journal, U.S. officials recently proposed a new round of trade negotiations with China. These would give the Chinese government another chance to address U.S. concerns before the Trump administration imposes bigger tariffs on goods imported from China, the report said. The two countries have already placed new taxes on $50 billion in imports, and the U.S. is threatening higher tariffs on $200 billion in goods and possibly more.

China has vowed to retaliate and has put off accepting license applications from American companies hoping to operate in the country. It has also requested to be allowed to impose sanctions against the United States for failing to abide by a World Trade Organization ruling on anti-dumping measures. The case, which was recently taken up by WTO’s dispute settlement body, centers on U.S. trade limits on Chinese products that the U.S. says are sold below market value. These include steel, coated paper, off-road tires, solar cells and diamond saw blades.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 3,248.90.

The projected upper bound is: 3,204.46.

The projected lower bound is: 3,054.56.

The projected closing price is: 3,129.51.

Candlesticks

A white body occurred (because prices closed higher 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 22 white candles and 27 black candles for a net of 5 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 27.6426. This is not an overbought or oversold reading. The last signal was a buy 0 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 33.89. 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 1 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 -73. 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 6 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 7.120 at 3,131.770. Volume was 13% below average (neutral) and Bollinger Bands were 6% wider than normal.

Open High Low Close Volume___
3,129.9203,139.4803,114.7403,131.770 220,516,480

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

Moving Averages: 10-period 50-period 200-period
Close: 3,155.68 3,243.04 3,411.48
Volatility: 11 15 15
Volume: 229,024,544 231,328,288 241,836,640

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 8.2% below 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 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 18 periods.

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