Thailand’s Strong Baht and Stock Market Rally

Thailand’s Strong Baht and Stock Market Rally

Thailand’s strong baht and stock market rally are in line with economic fundamentals, the central bank governor said on Wednesday, as the currency hovered around 28-month highs against the U.S. dollar.

The moves have been driven by stronger economic growth and easing political uncertainty, Veerathai Santiprabhob told reporters.

Southeast Asia’s second-largest economy expanded a more than expected 3.7 percent in April-June from a year earlier, the fastest pace in over four years.

The baht traded at 33.19 against the dollar on Wednesday. It has appreciated 7.9 percent against the greenback this year, becoming Asia’s best performing currency.

Thailand’s main stock index hit over four-year highs on Wednesday as foreign funds bought into Thai assets.

Technical Analysis

stocks

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 33.30.

The projected lower bound is: 32.97.

The projected closing price is: 33.13.

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 21 white candles and 29 black candles for a net of 8 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 28.3582. This is not an overbought or oversold reading. The last signal was a buy 21 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 32.84. 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 13 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 -134.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 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 buy 18 period(s) ago.

Rex Takasugi – TD Profile

FOREX THB= closed down -0.020 at 33.150. Volume was 25% below average (neutral) and Bollinger Bands were 66% narrower than normal.

Open High Low Close Volume___
33.170 33.200 33.110 33.150 7,752

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

Moving Averages: 10-period 50-period 200-period
Close: 33.22 33.51 34.55
Volatility: 3 3 4
Volume: 8,884 10,037 10,869

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

FOREX THB= is currently 4.0% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of THB= (mildly bearish). Our trend forecasting oscillators are currently bullish on THB= and have had this outlook for the last 1 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

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