Market Technician

Straits Times Index (FTSE STI) After trembling -7% since entering into May, Straits Times Index (STI) may expect short term rally.  As STI is trading at technical 3,150 support with Stochastic indicator (14/3) , measuring momentum, trading at oversold region. Disclaimer Applies.

Weakness as explained on chart. A fall below the ice, closing below $7,000, will confirm BTC Distribution Phase (Top). Closing above $8,400 will falsify the analysis. Disclaimer applies.

Keppel Corp (BN4) Trade war may have shaken the market, but oil prices remain stable with Brent continue trading above US$70/bbl. With Oil price staying relatively high, it gives prospect of a Oil&Gas industry recovery. And one of the beneficiary when O&G industry recovers would be Keppel Corp, one of the largest Oil Rig builder globally. Keppel Corp remains as one of the few stocks one STI with a positive Relative Strength (RS) against the STI. With Keppel Corp (or BN4 we brokers call it) may potentially see an reboud as the stock trades towards a "Resistance-turned-Support" zone. With trading volume slows as the stock trends lower, this signifies that the eager of sellers have slowed. With both, we may see Keppel Corp rebounds from here with first price objective S$6.60 and next at S$6.75. Disclaimer Applies.

Gold With US-China trade war escalateing, looks like smart money are putting their funds into safe-haven asset class like Gold to weather the storm.  We saw Gold consolidates without breaking down since Jan 2019, but what's more critical is the 2 recent Springs  that we saw in late April. Spring signifies exhaustion of supply in Wyckoff's principles.  To add on the bullish clues, Gold breakout of its downward trendline (stride) with larger than usual volume yesterday and this represents a Sign of Strength by the buyers.  Thus, the sign of strength demand and exhaustion of supply, we expect gold to re-test recent high, trading towards US$1,350. Traders or Investors can access gold via Gold ETF (O87) listed on SGX. Learn more about the Wyckoff Principles and how its helps market participants in identifying trends in our upcoming free seminar, Introduction to Wyckoff Method, at SGX Auditorium. 

STI Experiencing Weakness As US-China trade talk develops negatively, Singapore being a major trade hub inevitably is feeling the heat. STI reached a high of 3,412.17 and reversed with a Bull Trap pattern. Adding to its woes, the index broke below its primary uptrend line today. Similar pattern occurred in May 2013, with the index reaching a low of 2,953 from its 3,464 high. Thus, with the bearish outlook, investors may explore derivatives listed on the exchange such as DLC or structured warrants for hedging or traders taking trades on the short side of the market. May remained as one of the most volatile month to trade.  Disclaimer applies.

China A50 China A50 comprises 50 largest companies listed on China (A-shares). And these companies will be the first in-line to be impacted by outcome of the US-China trade talk. With the index trading in Mark Down phase,  Smart money is pricing in that the upcoming US-China trade deal may not be as successful as anticipated. Our proprietary FFI indicator is also suggesting funds exiting the index. As investors or traders who are looking to long on cyclical sectors, its crucial to monitor the current downtrend line (Red) governing the mark down phase.  Only with a successful breakout coupled with accumulation phase sighted, may signal a potential turn around and reduce risk of entering the market too early. Till then, trading or allocating funds in defensive sectors or short-side trades would be preferred in current conditions. Disclaimer Applies. *Above chart is a CFD tracking FTSE China A50 Index

STI vs USDSGD Above is a chart showing the inverse relationship between STI and USDSGD. A strong USDSGD generally leads to a weak STI, and vice-versa.  T he relationship as it potentially points to funds flowing into and out of Singapore market. Last May, we saw USDSGD broke out from its accumulation phase with STI breaking below its Distribution phase which lead to an Mark Down phase.  In recent trading, we seems to be in similar position again. And if USDSGD is to breakout from its $1.362 level, we will potentially see STI entering into Mark Down phase again. To learn how technical analysis value adds to your trading and investment,  do   Join Us in our upcoming Effective Technical Analysis and Market Forecasting class. Disclaimer applies.

Bitcoin/USD Bitcoin reached our 2nd target price at US$5,800 with current price at US$6,113. Our 3rd target price is set at US$6,300, of the current Mark Up phase.  One reason for the conservative target price is the low-volume breakout of from its re-accumulation zone between US$5,000-5,500, which indicates weak demand. Thus we'll need to be cautious when trading at current level. We have forecast Bitcoin's "bottom" and price mark up till date since US$3,700 level. In addition to the money we made, the importance here is that as traders we need to learn to identify market phases, recognise price characteristics and trade in harmony with the market and smart money. Join Us in our next FREE Introduction to Wyckoff Method Seminar to learn more about trading alongside the market and smart money.