Straits Times Index (STI) Update

Straits Times Index (STI) Update: SHORT TERM PULLBACK
Technical Observation:
The Index touched 3,055 zone which we discussed on our last posting and reversed during today's trading session.

Where is STI trading from here? My Bias for STI is to pullback from here towards 2,980-3,000 zone with a corrective a-b-c corrective sequence after completing the 5-wave impulse sequence started 27 Dec 2016.

Alternative direction will see STI moves sideway within 3,000–3,060 zone. STI continues to trade in a upward momentum in view we did not experience any violations of the uptrend channel and MACD continues to trade above zero.

Personal view, current correction will provide investors to add leading stocks for mid-term holding or Swing Trade opportunities. Sectors to consider are Real Estate and Financial Sectors. The specific stocks were shared in my Weekly Outlook this morning.

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

Market Technician

Search This Blog