China Internet Companies Earnings to trigger directional move

Thoughts on Week Ahead:

Week 13 Nov 2023

Expecting China Internet Companies Earnings to trigger China stock market directional move

US stocks traded within a narrow trading range for the majority of the week, but concluded the week with a strong close, +1.56% on Friday. From a technical perspective, the S&P 500 has surpassed 4,400 key resistance level, leading us to anticipate a potential move towards 4,500, provided that 4,350 support remains intact.

Investors and traders will be closely monitoring the earnings reports of Chinese internet companies this week. We anticipate a directional shift following these earnings, as the reports are expected to provide insights into the recovery and growth of the Chinese consumer market. Additionally, investors are also keeping an eye on the US Oct CPI report for any unexpected developments.

Gold and oil prices experienced declines, influenced by a potential pause of tensions in the Middle East. Key support level for gold will be at US$1,900/oz.

Looking ahead to the upcoming week, preference remains for long trades, but cautious on any indications of increased supply.

Headlines for Week Ahead:

Corp Earnings (Tencent, Alibaba, JD.com, Walmart, Home Depot, Target)

US Oct CPI, Retail Sales

China Oct Econ Data

Xi-Biden Sidelines meeting at APEC

SG Oct NODX

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

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