Oil Price (Brent) in Mark Up Phase (Short Term View)

Price consolidated in a re-accumulation zone within US$50-US$53 since early Aug. Earlier yesterday, we finally saw the price did a breakout (Sign of Strength) above US$53 level, and closed above US$53.00 on the 4-hourly chart. This gave us conviction that oil is trading in a Mark Up phase with 1st objective set at US$54.50.

The 1st objective level is set based on a confluence of factors which includes previous resistance level and Fibonacci projection of 161.80%. Similarly, the 2nd objective is also based on confluence of previous resistance and Fibonacci projection of 261.80%.

Momentum indicator, MACD, also continue to displayed upward momentum with the MACD trading above zero line.

In addition, oil would be trading towards a seasonality strong period bought by the colder weather towards year-end.

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

DBS Group Holdings (D05) Upward Move Expectations Technically, price trading above 36.58, could see DBS Group retest previous high of 38.55. Both Relative Strength and momentum indicator FFI are supportive of the move. Stop below 35.42 Disclaimers apply

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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