Market Technician

  Eventful Week: FOMC Decision and Earnings Reports Headline Upcoming Week The week ahead is shaping up to be a busy one for the markets, with the Federal Open Market Committee (FOMC) meeting and earnings season taking center stage. The FOMC is widely expected to raise interest rates by 25 basis points on Wednesday, in an effort to combat inflation. This will be the first rate hike after June's pause, and investors will be closely watching the accompanying statement for any clues about the pace of future rate hikes. Earnings season is also in full swing, with more than 100 companies in the S&P 500 scheduled to report results this week. Investors will be looking for signs of how companies are weathering the current economic and geopolitical challenges. In the meantime, China markets appear to be stabilizing, with the yuan holding steady against the dollar below 7.25 and KweiChow Moutai (600519), a vital component of the China A50 index, which displays strength by breaking out...

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  When to add SIA (C6L:SGX), technically Investor enthusiasm spiked when Singapore Airlines (SIA, Stock Code: C6L) recently announced a net profit of S$2.16 billion for the fiscal year ending March, a remarkable rebound from a loss of S$962 million the previous year. Yet, this optimism took a hit after Temasek Holdings offloaded approximately S$400 million worth of SIA shares in late June, which equates to a 1.85% stake, triggering a significant drop in the share price. From a technical standpoint, SIA's stocks currently teeter in a neutral zone, caught in a tug-of-war between buyers and sellers vying for market dominance. In summary, investors might want to consider increasing their stake in SIA if the share price surpasses S$7.49 , as this would indicate that the technical Supply Gap has been filled. Conversely, if the share price slips below S$7.11, it may be wise to reduce holdings or abstain from purchasing shares for the time being. This is because trading below this key ...

  Mapletree Log Trust (M44U): Expecting gradual uptrend momentum bThe trust continues to see supply exhausting (improving FFI) and RS remain above zero.  The trust could potentially attract more demand as interest rate and FX environment stablise from a less hawkish FED and softer dollar.  Dividend yield at the moment is 4.71%. 1st target is at S$1.77, next is at S$2.00. Stop loss is below S$1.59. Disclaimers apply

  Continue to be cautious  Both the US and Singapore stock markets witnessed a surge last week, buoyed by a depreciating dollar and expectations that interest rates may have reached their peak. However, Friday's trading session saw the markets relinquish their intraday gains following the announcement of financial results from major US banks. From a technical standpoint, this observation does not bode well for bullish investors. As we venture into the coming week, the markets will continue to be heavily influenced by the ongoing earnings reports. Currently, both the US and Singapore indexes are trading at crucial resistance levels, while the Chinese market is trading at a significant Fibonacci support level of 61.80%. In light of these developments, we maintain a conservative approach towards the upcoming week Headlines for Week Ahead: Corp Earnings (BAC, MS, GS, IBM, NFLX, TSLA, JNJ, PM, and AXP) China 2Q23 GSP China Economics Data (Ind Pro, retails sales, employment) US Reta...

  Straits Times Index (STI) S&P 500 Cautious as earnings season starts Earnings season is here, and investors are feeling cautious. The S&P 500 failed to breach the mid-June 4,450 high and reversed to fill the 4,400-4,350 gap. This is not positive for the near term. Key support at 4,320 , and if this level holds, we could continue to see upside on the S&P 500. However, if 4,320 is breached, the volatility could extend further. Straits Times Index (STI) on the other hand, broke immediate support , could see index trade lower towards, 3,100. For any bullish case, we need index to trade back above the supporting trendline. We have not located any trade setups for the week ahead, but we will update you if we identify any potential trade setups. Headlines for Week Ahead: Start of the Q2 earnings season  (US Banks on Friday) FOMC Beige Book report US FED officials will speak at events China CPI SG 2Q23 GDP (Adv Est) Blog Disclaimers apply

  Haier Smart Home (6690):  Potential momentum breakout  Relative Strength (RS) indicator crosses zero mark as Fund Flow Index (FFI) remains positive.   Slow but recovering property sector in China, could help company's earnings outlook. Blog disclaimers apply

  The US economy is growing, at 2% for 1Q23, even amid high interest rates. This report would confirm the hawkish stance from the Federal Reserve to increase two more hikes in 2H23 but it’s a sign of a resilient economy. S&P500 is nearing our 2nd target at 4,500 (above)  and we expect the index to test the resistance level. In absence of supply trades, we could see the index trending higher. Recent technical gap (4,422-4,396) provides support for S&P500. In any event this level is breached, we would reassess the direction of current uptrend. Strategists have been conservative in their year-end S&P 500 calls (above) . We expect them to re-rate their target prices and this could potentially fuel the next leg of the current mark up. The GDP data is also expected to provide some  boost for broader market and smaller capitalised stocks  (above)  have lagged behind larger cap stocks in the recent rally, as investors search for value within the current bu...