Weekly Market Outlook

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

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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