Singapore: STI Index (.STI) Xi’s speech gives no hope to stock traders

Singapore: STI Index (.STI) Xi’s speech gives no hope to stock traders

Singapore: STI Index (.STI) Xi’s speech gives no hope to stock traders

Xi Jinping’s speech marking the 40th anniversary of China’s reform era was one that Asia’s equity investors had their eyes on Tuesday. But his comments weren’t what they were hoping for.

No new initiatives for reform measures were mentioned, and it ended up being a speech about what the nation’s Communist Party had done so far. That was a disappointment for investors who were expecting to hear more about specific policies for further opening of China’s economy.

Japan’s Topix index hit a session low in afternoon trading, Chinese equities slumped and in South-east Asia, several benchmark indexes including those of Singapore and the Philippines plunged by more than 1.5 per cent as the US stock carnage seeped into Asian markets. Overnight in New York, the S&P 500 Index closed at its lowest in 14 months on Monday.

Singapore’s Straits Times Index was down 1.8 per cent.

Overall, the bias in prices is: Downwards

The projected upper bound is: 3,138.65.

The projected lower bound is: 2,947.00.

The projected closing price is: 3,042.82.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black 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 9 falling windows in the last 50 candles–this makes the current falling window even more bearish.

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 37.5868. This is not an overbought or oversold reading. The last signal was a buy 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 43.53. 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 33 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 -131.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 5 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -68.710 at 3,045.540. Volume was 3% above average (neutral) and Bollinger Bands were 16% narrower than normal.

Open High Low Close Volume___
3,077.8903,080.7703,045.5403,045.540 233,549,840

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

Moving Averages: 10-period 50-period 200-period
Close: 3,096.22 3,072.39 3,288.34
Volatility: 21 20 16
Volume: 196,569,376 232,029,312 237,255,664

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.

Summary

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 7.4% below 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 moderate flows of volume into .STI (mildly bullish). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 18 periods.


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