Bitcoin Broke Out as We forecasted, What's Next?

On 11 Feb 19, we applied the Wyckoff Method and forecast that bitcoin (BTC) has entered into an accumulation zone (bottomed) and is expecting a breakout. We got the breakout today with BTC reaching a high of $5,106.

With the strong breakout, we expect BTC to range or pullback amid profit taking. It will also be an opportunity BTC to test its support (and the rest who has not entered to hop on).

BTC is currently trading in Mark Up phase, we will expect BTC to retest its $5,000 high and if successfully broken, next target would be $5,800.

Learning to recognise demand/supply balance and identify different phases of price cycle allow us to capture opportunity and reduce risk in our market operations.

Continue following our blog to learn more about Wyckoff Method and identifying various phases of price cycle.

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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