Weekly Markets Outlook

Thoughts on Week Ahead:

Week 25 March 2024

This week investors are looking for US FED's policy moves from Chief Jerome Powell speech scheduled for Friday and PCE print on Thursday.

Technically, S&P 500 continues to display bullish behaviour, and has crossed our 5,200 resistance. However, we are cautious on the market as trading volume against price is not supportive (FFI reading diverging from index trend).

Both Straits Times Index and China A50 Index are challenging their respective trendline resistance. We are looking for directional moves on both markets.

We continue to monitor for trading set up for the week ahead.

Headlines for the week:

- US PCE, US FED Chair speaks

- SG CPI, Ind Prod

- Short trading week (markets closed for Good Friday)

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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