Singapore: STI Index (.STI) Waning sentiment over a US-China trade resolution sent investors running for the hills
Waning sentiment over a US-China trade resolution sent investors running for the hills in a broadly lower session in Asia.
This followed a Wall Street sell-off on Tuesday, triggered by key US officials supporting increasing levies on Chinese imports.
The mood saw the Straits Times Index (STI) reverse Tuesday’s 0.7 per cent gain to close down 28.68 points, or 0.9 per cent, at 3,283.84 yesterday. It has fallen by 108.45 points or 3.2 per cent this week.
“It had been a sea of red as markets in Asia digested the fact that Friday’s tariff implementation from the United States could become a reality and further hurt the precarious global growth situation,” IG market strategist Pan Jingyi said.
Moreover, China’s April trade figures – which were mixed – did little to improve market sentiment as Australia, China, Hong Kong, Japan, Malaysia and South Korea markets all ended lower.
The Nikkei 225 dropped 1.5 per cent to 21,602.59 – a five-week low. A stronger yen, which tends to rally in times of risk-off sentiment, also weighed on the Japan market.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 3,351.38.
The projected lower bound is: 3,216.76.
The projected closing price is: 3,284.07.
A black body occurred (because prices closed lower 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 31 white candles and 19 black candles for a net of 12 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 5 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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 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 18.4273. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 3 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 41.92. 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 2 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 -179.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 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 2 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed down -28.680 at 3,283.840. Volume was 4% above average (neutral) and Bollinger Bands were 14% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,354.95 3,277.35 3,187.88
Volatility: 21 13 15
Volume: 222,460,272 213,324,240 216,299,664
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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
STRAITS TIMES is currently 3.0% above its 200-period moving average and is in an upward 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 bullish on .STI and have had this outlook for the last 23 periods.