Market Technician

  MIT: Expecting Change of Momentum after Existing Downtrend Line What are we expecting? Mapletree Industrial Trust ( ME8U ) broke its key downtrend line on 18 Mar 21, technically signaling positive trend change. Similar to Apr 2020 move. Momentum Indicator, MACD (bottom of the chart) is displaying a upward sloping momentum which is supportive of the technical move. Who should be concerned? Investors:  Consider increasing allocation into ME8U under income portfolio, with current indicative yield of 4.50%. Traders: Taking Long positions  with 1st target price at S$2.95, next at S$3.30.Stop Loss below S$2.50. *Disclaimers apply

  Hang Seng Index (HSI) Facing Downtrend Pressure What are we expecting? Hang Seng Index (HSI) fell below its key support level at 28,000. This break is more significant than usual as HSI has just experience index being halted at 31,000 level, and mounting Supply as indicated by our proprietary FFI (Fund Flow Index) indicator.  These actions suggest the index is in a Distribution Phase, entering Mark Down phase. First level of support for HSI will be at 26,000 area cushioned by high volume area and 1.618% Fibonacci level. Who should be concerned? Investors: Investing in the Hong Kong Market may reduce position at this point but also keep a lookout for stocks that show signs of bottoming during the Mark Down process. Traders: Taking short positions is preferred till 26,000 target reach or character of accumulation phase is observed.  Why the Mark Down? Stock market is always forward priced, we will not be able to clearly define the reason till 3-6months later. One mar...