Continue to be cautious

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 Retail Sales
US Manufacturing Survey
SG Jun NODX
G20 Finance Ministers & Central Bankers summit

Blog disclaimers apply

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