Skip to main content

Week Ahead: Long or Short Nvidia and the AI Theme?

 




Week Ahead, 25 Nov 2024

Macro News:
All eyes were on Nvidia Corp this week as the company reported another set of record earnings. However, the revenue forecast fell short of analysts' expectations, causing the stock price to decline by -3.22% on Friday.


Based on historical price action, the stock often experiences profit-taking or selling pressure after earnings announcements. Technically, as long as NVDA remains above the 150-day Simple Moving Average (SMA), the medium-term uptrend momentum persists. If NVDA trades below this level, we will reassess not only Nvidia Corp but also the overall medium-term trend of the AI theme.




Medium Term:

·       S&P 500: The S&P 500 index is retesting the 6,000 level, with immediate support at the 5,800 level.

·       STI: The Straits Times Index (STI) has returned to the resistance zone at 3,730. No significant technical signals have been observed. If momentum continues, the index could move towards the 3,860 level.

·       Hang Seng Index: The Hang Seng Index is nearing the 19,000 level, a key support level (Fibonacci 61.80%). Technically, the ability to maintain above this level indicates that the uptrend remains intact.


Long Term:

·       S&P 500 remains upward

·       Hang Seng Index (HSI) remains upward

·       Straits Times Index (STI) neutral to upward trend.


Headlines Next Week:
- OPEC+ Meeting
- US FOMC meeting minutes, PCE Inflation data, 2nd est 3Q24 GDP, Shorten trading week
- China Nov PMI
- SG Oct CPI, Ind Prod

Disclaimers apply



Most Popular

Historical Stock Market Performance During the Year of the Snake (2025)

Historical Stock Market Performance During the Year of the Snake (2025) Introduction: The Chinese zodiac plays a fascinating role in shaping cultural beliefs and behaviors. Among the 12 zodiac animals, the Year of the Snake is often associated with intelligence, caution, and financial shrewdness. We take a simply review of three key indices, S&P 500, Hang Seng Index (HSI), and Straits Times Index (STI),  annual performance  during the Year of the Snake. Key Observations from the Data: S&P 500 Performance: Average annual return: 0.47% . Win/Loss ratio: 37.5% (3 years of gains vs. 5 years of losses). Notable years: 1989 marked a robust gain of 27.25% , while 1941 saw a steep decline of -20.22% , coinciding with global tensions during World War II. HSI Performance: Average annual return: -5.36% . Win/Loss ratio: 66.67% (2 years of gains vs. 1 year of losses). Notable years: The index's strongest year was 1989, with a return of 5.55% , while 2001 suffered a severe decli...
Read more

BYD Co (1211:HK) Witnessing Signs of Strength

BYD Co (1211:HK) Witnessing Signs of Strength On Friday, we observed strong buying within a wide trading range, with the stock closing near the day’s high and good volume recorded. The previous two days of selling showed relatively low volume, indicating potential supply exhaustion. The stock price is currently at a key resistance level, constrained by a downward trendline and a horizontal support-turned-resistance line. A breakout above this level could signal a potential trend reversal , with an initial technical price target of HK$300.00. The stock is outperforming the broader market, indicating strong market demand, as evidenced by our proprietary Relative Strength Indicator (RSI), which is above zero. Additionally, the volume momentum indicator (FFI) is improving, further supporting the possibility of supply exhaustion. The Stochastic indicator also continues to trend higher, reinforcing a bullish outlook. A stop-loss price is set below HK$248.40 . If the price falls below this l...
Read more

Week Ahead: Sustaining December’s Investor-Friendly Momentum

  Week Ahead, 2 Dec 2024   Macro News: Despite inflation remaining firm, the market continues to expect that the US Federal Reserve has a higher probability of cutting rates by 25 basis points at the upcoming FOMC meeting . December marks the final month of 2024 as we approach the year's end. Historically, the S&P 500 Index has been favorable to investors in December , with a 70.83% probability of a positive return and an average gain of 0.74%. We hope these trends persist in 2024. Currently, we have not identified any trade setups. We will provide updates if any opportunities arise. Medium Term: ·        S&P 500: The S&P 500 remains above the 6,000 level and could trend towards the 6,180 zone. ·        STI: The STI remains at the 3,700 resistance zone, with no major technical signals observed. If momentum sustains, the index could move towards the 3,860 level. ·     ...
Read more