Weekly Markets Outlook

Thoughts on Week Ahead:
Week 4 March 2024

Much like Taylor Swift's lyrics, "I shake it off, I shake it off," the US markets shrugged off concerns regarding high interest rates and recession. And instead, persist in an upward trajectory, at new all-time highs.

From a technical standpoint, the S&P 500 maintains its upward trend, facing potential resistance at 5,200 with support at 5,000 level. In contrast, the Singapore market treads cautiously, residing within a gradual downward channel. Meanwhile, the China A50 Index holds firm above the 11,200 support level, shows promise in challenging its downtrend line resistance in the near future.

We favour long trades in the US market, exercising caution and selectivity in the Singapore and China Hong Kong markets for the week ahead.

Headlines for the week:
- Corp Earnings (Target, Costco, Adobe)
- US FED officials speak, NFP report, ISM Servies PMI, JOT Job Openings
- China Annual Two Sessions Meeting
- SG Feb PMI, Retail Sales,

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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