Week Ahead: Key Levels to Watch as Markets Come to Terms with a Higher-for-Longer Fed Policy

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 support level of 3,720, with the next technical support at the 3,650 zone.

· Hang Seng Index (HSI): The Hang Seng Index remains near the 19,500 support zone. No major technical developments have been observed at this time.

Headlines Next Week:

- US, shorten trading week (Christmas)

- China 1-yr MLF, LPR, Ind Prod

- SG Nov CPI, Ind Prod

Wishing all readers Merry Christmas and Happy Holidays.

Disclaimers apply

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

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...

Can I Still Buy into This China Rally?

Can I Still Buy into This China Rally? Technical Picture: KWEB ETF (CSI China Internet Sector) signals a potential bullish reversal after a period of downtrend and consolidation. The breakout (Sign of Strength) above $36.04, accompanied by strong volume (FFI), suggests further upside potential, with targets in the $51.00 zone (and possibly $67.00), supported by Beijing's series of economic stimulus measures. Technically, the upward outlook remains valid as long as the price stays above $35.87. Investor Strategy: Using a 61% stop-loss strategy, an investor could consider entering a position in KWEB. The next step would be to calculate how much risk they can tolerate if the price drops below the 61% retracement level (around $30.00), at which point the investor would exit the position, assuming a reversal in macroeconomic conditions. Disclaimers apply.

Market Technician

Search This Blog