Boustead Projects

Boustead Projects (AVM): Potential Mark Up

Technical Observations:
Boustead Projects (BP) traded with daily wide fluctuations in a low liquidity environment between 0.70-0.80 (re-accumulation zone) before experience a Mark Up in late March 2017. Currently, BP is trading again in a Re-accumulation zone between 0.85-0.90.

We are seeing increased in trading activity (volume) in the past few trading sessions which may signals a potential Mark Up again towards the 1.00 level.

Agressive traders may consider current level. More conservative traders may wait for a Line Change at 0.905.

The company will be announcing its FY2017 results after Market Closed on 22 May 2017.

Probable Trade Set-up:
E: S$0.88 / 0.905
S: S$0.845
T: S$1.00
R/R Ratio: 3.43x / 1.58x

Wyckoff's Law of Effort

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.

DBS Group Holdings (D05): Upward Move Expectations

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Keppel DC REIT (AJBU): Expect price to trade towards S$2.00

Keppel DC REIT (AJBU) Expect price to trade towards S$2.00 We have observed a decrease in technical supply at the S$1.80 support area during recent trading sessions. Furthermore, a softer interest rate outlook could be advantageous for the Data Centre operator. Consequently, we anticipate the REIT to move towards our initial target of S$2.00, with the potential to reach S$2.20 if it breaks through resistance. Our stop level is set below S$1.72. Disclaimers Apply

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