Market Technician

  FTSE Bursa Malaysia KLCI Index  (EWM ETF) : Bullish Breakout, Expect Momentum to continue  The FTSE Bursa Malaysia KLCI Index is showing promising signs of bullish momentum as it closes the year with a strong breakout above a key descending trendline.  Key Observations 1. Breakout from Downtrend Line The index has decisively broken above a descending trendline that has been acting as resistance for several months. This breakout signals a potential trend reversal, transitioning from a bearish phase to a bullish outlook. A breakout of this nature often indicates increased buying pressure and investor confidence. 2. Critical Levels to Watch Support Level:   The key support is at 1,588.16. This is the stop-loss level for bullish positions and serves as a safety net should the price retrace. Resistance Levels: First Target (1,647.43): This is the immediate resistance and the first profit-taking zone for traders. Second Target (1,677.06): If the price sustains abo...

  Week Ahead: December 30, 2024 Macro News Summary: ·    Markets largely traded sideways as we approach 2025, bidding farewell to another positive year in 2024. ·    Quantum Computing stocks like RGTI, QBTS, and QUBT are showing a climactic trend, memories of the AI frenzy in 2021. Consider using trailing stops, such as the 13-day SMA, to manage risk. Reduce your holdings or take profits if prices trade below these levels. ·    No specific ideas for the upcoming week. ·    Note: This is a shortened trading week due to New Year’s Day. Medium Term: ·  S&P 500 (SPX): S&P 500 trading within a range bound 5,860 - 6100. We are monitoring technical signal for directional move. ·   Straits Times Index (STI): STI trading within a range bound, 3,700-3,850. We are monitoring technical signal for directional move. ·  Hang Seng Index (HSI): Hang Seng Index (Grey) continues to trade around 19,500 support zone. Nil...

  Week Ahead: 23 December 2024 Macro News Summary: ·        The November US PCE Index provided a boost to the equities market on Friday, as it rose less than expected. ·        The CNN Market Sentiment Gauge rebounded from the Extreme Fear zone, suggesting a potential opportunity for buying the dip. ·         Nil trading set up identified, we will update if we come across any. ·        This will be a shortened trading week due to Christmas Day.   Medium Term Outlook: ·        S&P 500 (SPX): The S&P 500 is trading at a key technical support level. The uptrend is expected to continue as long as the support area holds. ·        Straits Times Index (STI): The STI is trending lower in the short term. We are monitoring for potential reversal signals. The index is currently at its first suppor...

  Yangzijiang Shipbuilding (YZJ) has been exhibiting favourable technical and fundamental observations. 1. Technicals The chart shows a price  breakout above S$2.75 , which had previously served as a strong resistance level. This breakout occurred with increasing volume, indicating strong buying momentum. Price Targets: - 1st Target: S$3.0 - 2nd Target: S$3.20 - Trailing Stop Loss Box (7): S$2.36 (Current) These targets are in line with Fibo extension, 1.618% (S$3.02) and 2.0 (S$3.19). Support and Stop-Loss Investors should keep an eye on the trailing stop at S$2.36 , derived from current Box (7) value. Relative Strength While the stock is outperforming the STI index , the relative strength index (RSI) is not yet overbought, signaling room for further upward movement. 2. Fundementals YZJ's robust strong order and  underlying structural trend in s hifting to clean Energy Vessels  container and LNG vessels, continues to support company's order book , which extends i...

  Week Ahead, 16 Dec 2024   Macro News: On China markets, the same market action persists, “Buy on stimulus announcements, and sell off a day or two later”. This is the playbook for a policy-driven market. However, as China’s economic data continues to hold, if the pledged stimulus are delivered, we could see reflation of the Chinese economy. Patience is key when investing in China.   On the other hand, we too observes that US markets are also leaning toward a policy-driven dynamic, as evidenced by the recent rallies in Bitcoin and Tesla that coincided with the re-election of the US President. We maintain a bullish outlook on the overall US market. However, we are becoming cautious as Nvidia Corp, the leader in the AI theme, appears to be forming a potential classical bearish head and shoulders pattern after facing pressure from both the US and Chinese governments.   The week ahead features a significant announcement from the US FOMC committee. As be...

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...

  Week Ahead, 9 Dec 2024 Macro News: U.S. markets continued their record-breaking streak this week following a reassuring speech by U.S. Federal Reserve Chair Jerome Powell, highlighting Fed's cautious yet comfortable stance on rate cuts. Beneficiaries of the "Trump Trade" also saw significant gains, with Tesla Inc. rising by +12.77% and Bitcoin up +2.24% for the week. The U.S. technology sector, represented by the QQQ ETF, also performed strongly, boosted by Friday's jobs report, which indicated a resilient economy. Meanwhile, the Hang Seng Index (2800 ETF) experienced a technical turnaround, gaining +2.28% this week. The rally was fuelled by speculation that Beijing might introduce additional lending and mortgage rate cuts to stimulate the economy. Medium Term: • S&P 500 (SPX): Index remains above the 6,000 level and could trend towards the 6,180 zone. • Straits Times Index (STI): STI reversed near our 3,860 resistance zone. We are neutral and is looking out for...

  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. ·     ...