Market Technician

Week Ahead: 26 Aug, 2024 ‘Time has come’ for US Federal Reserve to cut interest rates, says Chairman Jerome Powell. His remarks ignited US market equities rally with S&P 500 gaining +1.15%. For the week ahead and mid term, the dovish stance is expected to lead to weakness in the US dollar, positive momentum for global equities and non-US currencies. S&P 500 could retest it’s July high of 5,669, while China and Hong Kong equities also poised for rebound. Singapore STI is at its 3,400 resistance area and we are watching for directional move.  Another key event to watch for the week is Nvidia's earnings report on August 28th. Investors will be closely examining the company's results for clues about the ongoing AI trend. A strong performance from Nvidia could fuel further momentum in AI-related stocks. Finally, Apple is set to unveil its new lineup of iPhones, AirPods, and watches on September 10th. This event could impact the broader consumer electronics sector, with pot...

Hongkong Land (SGX: H78) : Positive Momentum in Progress Hongkong Land (SGX: H78) has shown a compelling technical setup that indicates potential bullish momentum. The daily chart reveals a prolonged downtrend that has tested significant support and resistance levels, giving us crucial insights for the upcoming trading sessions. Key Levels and Momentum: Support Zone (0 level at S$2.78): The stock recently bounced off a significant support level at S$2.78, which has held strong since its last test. This level corresponds to the lows from previous years, indicating strong buying interest at this price point. Resistance Levels (1 level at S$3.54 and 2 level at S$4.31): The chart highlights two key resistance zones. The first is around S$3.54, where the price has struggled to break through in the short term. A successful breakout above this level would suggest a move towards the next resistance at S$4.31, which could see the stock approach S$4.30—a potential target derived from the previ...

  Gold Price Gold prices have hit a fresh record high, supported by a softer dollar and a lower interest rate outlook. We have expectations of the move to continue given the outlook. US: Gold ETF (GLD) SG: Gold ETF (GSD, O87) Disclaimers apply

  Alibaba Inc (BABA, 9988) US$83.18 Adverse news flooded the market after Alibaba Inc reported weaker earnings last Friday. However, the stock price traded up 4.58% for the day . Investors were less focused on the earnings and more on the announcement of the completion of Alibaba's primary listing in Hong Kong.This will largely lead to its inclusion in the Stock Connect, boosting inflow from Chinese investors for the stock. From a technical perspective, the price remained above its US$80.00 resistance level. There are expectations for the stock to move toward its previous May 2024 high of US$90.00, with potential to reach US$100.00. https://finance.yahoo.com/news/alibaba-long-awaited-china-stock-002047551.html Disclaimers apply

Week Ahead: 19 Aug, 2024 Gold prices have hit a fresh record high, supported by a softer dollar and a lower interest rate outlook.  With the earnings season coming to a close, the S&P 500 has resumed its upward trend and could retest its July high of 5,670 as investors return to the equities market following last week’s unwinding of the JPY carry trade.   The STI may continue its upward momentum , boosted by better export data reported on Friday, with a potential retest of the 3,400 zone this week , marking a 61.80% retracement of the current wave.   The China A50 , a leading indicator of the China and Hong Kong equities markets, is currently at a critical support level of 11,500. Investors will be closely watching for any catalysts from the Central Government or corporate earnings that could drive demand for Chinese and Hong Kong equities. Headlines for the week: - US Jackson Hole Symposium, FOMC Minutes,  - China LPR Fixing - SG Jul CPI Disclaimer...

  Trade Follow-Up: Keppel DC REIT The REIT has reached our first target. Supply and demand factors currently indicate that the price could reach our second target in the S$2.20 zone. Disclaimers apply.

  Week Ahead: July 12, 2024 Investors are eagerly anticipating the next phase of growth under Tan Su Shan, a seasoned banker and former DBS intern, as she takes the helm at Singapore's largest bank by market capitalization. Recent downgrades have been observed in the Singapore banking sector, with Citibank issuing a Sell rating on the three major Singapore banks, and UOB Kay Hian’s Jonathan lowering the sector's rating to Market Weight. This recent sell-off could present opportunities for averaging in, but investors should remain cautious or consider lowering their allocation, as impending U.S. rate cuts could compress the banks' net interest margins (NIM). Market sentiment is currently at one of its lowest points, according to CNN's Fear & Greed Index. Our Long-Term Market Cycle Indicator remains bullish, suggesting that this level presents buying opportunities. However, caution is advised, as short-term momentum has not yet reversed to bullish, and a confirme...

  Nvidia Corp is trading around its critical level of $100.00. Historically, at this -1.618% retracement point, the price has either rebounded or continued its decline.  Consequently, this level offers a low risk-to-reward ratio for swing traders , while long-term investors might consider reducing their positions if the price falls from here. Disclaimers apply

  Week Ahead:  5 August 2024 Markets declined after the US unemployment rate climbed to 4.3%, intensifying recession concerns following a period of high-interest rate policies. Risk assets also suffered this week as a strengthening Yen unwound the popular carry trade strategy (borrowing Yen to invest in riskier assets). The overall sentiment for equities deteriorated further as Buffett's Berkshire Hathaway reported a record-high cash position of $277 billion while simultaneously reducing its Apple Inc holdings by 50%. The upcoming week is expected to be quiet in terms of economic data releases, with a few key corporate earnings reports scheduled. Technically, the S&P 500 is testing its 5,300 support level, and a short-term rebound is possible in this area. While we do not have a specific trading setup at this time, we anticipate further inflows into bonds and high-quality REITs, as the interest rate environment eases. Headlines for the week: - US Corp Earnings (Caterpil...