Weekly Market Outlook: Global Currencies and Equities Expecting Positive Momentum

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 potential implications for related stocks.

Headlines for the week:

- Corp Earnings (Nvidia, Salesforce, HP, DELL)

- US PCE, 2nd Est. 2Q24 GDP

- China MLF fixing, Aug PMI

- SG Jul Ind Prod

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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