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

Palantir Technologies Inc PLTR: Technical Rebound at Sight After US Broad Market Stabilises

Palantir Technologies Inc. (PLTR) USD86.24 Palantir (PLTR) posted a bullish reversal, closing above the 13-day SMA (83.56) with significant volume expansion. This signals potential momentum strength in the near term. First key resistance zone between the 50% and 61.8% Fibonacci retracement levels (USD 99.85 – 105.79), which could present selling pressure. Disclaimers apply

DBS Group Holdings (D05) and Straits Times Index (STI): Technical Change of Momentum

DBS Group Holdings (D05) and Straits Times Index (STI): Technical Change of Momentum Recent price developments in DBS Group Holdings (SGX: D05) and the Straits Times Index (STI) signal a critical inflection point. Both instruments have breached established ascending trendlines, suggesting a potential reassessment in investor sentiment and market trajectory. DBS Group Holdings (D05) Price Dynamics: DBS has decisively broken below its ascending trendline, closing at SGD 44.23, registering a 3.53% decline. The price action underscores weakening upward momentum and raises the probability of an extended correction phase. Key Technical Levels: 38.2% Fibonacci retracement: SGD 41.45 50% Fibonacci retracement: SGD 39.78 61.8% Fibonacci retracement: SGD 38.12 Full retracement: SGD 32.72 Outlook: The breach beneath the trendline suggests an erosion of bullish conviction. Immediate attention should be on the 38.2% retracement le...

Week Ahead: US Indices Momemtum in Question

Week Ahead: 10 March 2025 Key event this week was U.S. indices technically closed below the key 30-week (or 150-day) moving average . For the upward trend to continue, the indices need to reclaim levels above the moving averages. Remaining below the 30-week (or 150-day) moving average could indicate that the upward trend has reversed downward. However, in the short term, we expect a rebound as the indices trade near their respective support levels. Medium Term: S&P 500 (SPX): The S&P 500 broke below its key upward trendline, which had been established since October 2023. In the longer term, we expect the index to trade sideways or move in a downward direction. In the short term, we anticipate the S&P 500 will find support at the 5,700 level and could rebound to test the 5,860 and then the 5,966 resistance zones. Straits Times Index (STI): The technical trend remains bullish. We maintain a constructive outlook while staying vigilant for any sig...

Market Technician

Search This Blog