US China Trade Deal & China A50 Index

China A50
China A50 comprises 50 largest companies listed on China (A-shares). And these companies will be the first in-line to be impacted by outcome of the US-China trade talk.

With the index trading in Mark Down phase, Smart money is pricing in that the upcoming US-China trade deal may not be as successful as anticipated. Our proprietary FFI indicator is also suggesting funds exiting the index.

As investors or traders who are looking to long on cyclical sectors, its crucial to monitor the current downtrend line (Red) governing the mark down phase.

Only with a successful breakout coupled with accumulation phase sighted, may signal a potential turn around and reduce risk of entering the market too early.

Till then, trading or allocating funds in defensive sectors or short-side trades would be preferred in current conditions.

Disclaimer Applies.

*Above chart is a CFD tracking FTSE China A50 Index

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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