Gold Expecting Further Upside

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.

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

Market Technician

Search This Blog