Weekly Markets Outlook

Thoughts on Week Ahead:
Week 1 April 2024

This week investors are flooded with economic data as we enter a new month and quarter. The US jobs report on Friday is especially important because it will provide clues about wage inflation.

The technical picture for major markets is mostly unchanged from last week. The S&P 500 is bullish, but we are careful because trading volume and FFI indicator (Chart) is not keeping pace with price increases.

Both the Straits Times Index (STI) and the China A50 Index are still trying to break through resistance at their trendlines. We are waiting to see a clear direction emerge in both markets.

Upward trajectory observed in Brent crude oil may indicate potential opportunities within the energy sector stocks.

Headlines for the week:
- US NFP report, ISM report
- China Mar Econ reports
- SG PMI Survey, Retail Sales, MAS Announcement

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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