Market Technician

REITs Sector Poised for Upside Amid Falling Yields The REITs sector appears to be entering a recovery phase, supported by a favorable shift in the interest rate environment. As illustrated in the chart above, the NikkoAM-StraitsTrading Asia ex Japan REIT ETF (CFA) has started to rebound in tandem with the inverted Singapore 2-Year Government Bond yield, which has been trending higher—a proxy for lower actual yields. This inverse relationship is a well-established dynamic in yield-sensitive asset classes such as REITs. As bond yields decline, the relative attractiveness of REITs improves due to their stable income profile and yield spread advantage over risk-free assets. Lower interest rates also ease refinancing concerns and support property valuations, contributing to improved investor sentiment across the sector. From a technical perspective, the ETF appears to have found a base and is showing early signs of recovery , with the recent price action confirming a short-term bottom. I...

  Week Ahead:23 June 2025 US markets momentum persists, closing at record high. Upcoming earnings season, AI spending, trade talks and Middle East situation are expected to be drivers for the next few weeks of trading.  Short Term:  S&P 500 (SPX): With the index breaking above its February all-time high and a measured technical target at 6,300 (2.618% Fibonacci extension), bullish momentum is intact. Traders could look for pullbacks towards 6,050 as a potential entry area with tight risk controls below gap support. Momentum continuation setups can be monitored on lower timeframes. While investors can consider increasing exposure on dips, particularly in sectors leading the breakout (e.g., tech, industrials). Hang Seng Index (HSI): HSI’s strong weekly close near resistance at 24,200 suggests growing bullish conviction. A break above this could trigger a move towards 24,780 and 26,000. Traders can consider short-term trades targeting 24,780. Reentries can be considered ...

  Brent Crude Oil at a Key Inflection Point: Reversal or Continuation? Brent crude oil prices have staged a strong rebound in recent weeks, climbing sharply as geopolitical tensions in the Middle East persist. As of now, oil is testing a key technical zone near US$82 , where a major horizontal resistance aligns with the upper boundary of a long-term descending channel. This level is pivotal from a charting perspective. Technical Outlook US$82 Resistance Area: This zone marks both a key swing high and the downtrend resistance line that has defined the broader bearish structure since mid-2022. Potential Reversal Signal: A convincing breakout above this level would mark a significant technical shift, breaking the descending channel and potentially paving the way for a move toward the US$95 region — a level not seen since Q3 2023. Bearish Continuation Scenario: On the flip side, a failure to clear this resistance may reinforce the current downtrend, with price likely to...

  Week Ahead:23 June 2025 Uncertainties in the markets continue to mount, with two key events in focus: escalating Middle East tensions and the approaching end of Trump’s 90-day trade truce. Positive developments in either area could lift market sentiment, while adverse outcomes may trigger renewed volatility. At current juncture one of the measures we could rely on are various asset classes momentum to guide both investor and traders on long-term positioning and short-term tactical decisions. Short Term:  S&P 500 (SPX): The S&P 500 is expected to remain range-bound in the near term amid heightened Middle East tensions and the approaching end of the U.S. tariff truce. Key support levels to monitor are 5,900 and 5,780. Traders should stay nimble and consider short-term opportunities within the 5,780–5,970 band. Investors may look to accumulate on dips. Hang Seng Index (HSI): The Hang Seng Index (HSI) remains range-bound in the near term. From a technical perspective, ...

  Unlocking Market Trends: A Beginner’s Guide to Trend Trading Webinar Date: Tuesday, 8 July 2025 Time: 7:30pm – 8:30pm Venue: Online Registeration:  Link Navigating the financial markets can be daunting, especially for those new to trading. To help investors and traders build confidence and develop structured trading strategies, I am pleased to be co-hosting an upcoming webinar titled "Unlocking Market Trends: A Beginner’s Guide to Trend Trading". This free, one-hour session will introduce participants to the foundational principles of trend trading — a proven and effective strategy used by professional traders globally. Through the webinar, attendees will learn how to: Identify and validate emerging trends using price structure, moving averages, and key technical indicators; Implement sound entry and exit strategies, with a focus on risk management and capital preservation; Avoid common pitfalls faced by trend traders, by understanding the characteristics of price trends an...

Tactical Trade Progress: Palantir Technologies (PLTR) In my previous setup (see bottom chart), I highlighted a potential breakout in Palantir (PLTR) as price approached its all-time high of $125 . The setup was supported by a bullish breakout from its consolidation zone, improving stochastic momentum, and rising Fund Flow Index (FFI) — all pointing to strengthening institutional interest. Fast forward to today (top chart), the trade has progressed in line with our expectations. PLTR has successfully broken above the $125 resistance level and continues to trend within the anticipated upward channel. Price has surpassed Target 1 ($133.49) and is now approaching Target 2 ($147.60) , with Target 3 ($161.71) remaining in view should bullish momentum persist. Notably, FFI remains positive, and relative strength vs. the S&P 500 has continued to improve — reinforcing the medium-term bullish bias. Our initial stop-loss at $119.38 remains intact, though traders may consider trailing s...

  Sheng Siong (OV8.SI) — Re-accumulation Developing Sheng Siong (OV8.SI) has emerged as a potential markup candidate, following a strong breakout in May. Since then, price action has entered a well-defined consolidation just below the SGD 1.88 resistance level. The chart structure suggests a classic reaccumulation phase following the initial breakout. Price remains supported above SGD 1.80 , with a tight range suggesting controlled selling and possible institutional absorption. Volume has remained stable, while the Fund Flow Indicator (FFI) continues to trend positively — indicating underlying interest remains intact. Notably, relative strength vs. the Straits Times Index (STI) continues to hold above breakout levels, reinforcing the case for continued outperformance in a sideways-to-soft market environment. Should Sheng Siong break above SGD 1.88 with volume confirmation, upside targets are projected at SGD 1.96 and SGD 2.05 , marking the next leg of a potential markup p...

bMiddle East tensions are expected to continue dominating headlines next week, while the U.S. FOMC rate decision will also be closely watched. Medium Term:  S&P 500 (SPX): The S&P 500 could hover in the near term amid heightened Middle East tensions. Key support levels to monitor are 5,900, followed by 5,780. Consider short-term range strategies between 5,900 and 6,030, with tight stops below 5,780.  Hang Seng Index (HSI): The Hang Seng Index (HSI) tested the 24,200 resistance level. In the absence of strong demand signals, the index is expected to trade sideways in the week ahead. We will continue to monitor for demand or supply signals to confirm the next trend direction. Traders could take up LONG trades near support zone.  Straits Times Index (STI): The Straits Times Index (STI) is testing its 3,900 support level. We expect a sideways trend in the upcoming week, while closely monitoring demand and supply price action for confirmation of the next directional m...

  Week Ahead: 9 June 2025 The Musk–Trump spat sent Tesla Inc. shares lower, though investors are now awaiting a potential TACO moment. Immediate technical support levels for Tesla (TSLA) are at US$278 and US$250. A weaker U.S. dollar continues to support Asian equities, particularly in China/Hong Kong. Investors are hopeful that underweight global funds may begin to reallocate to China, providing catalyst for the market’s next leg up. Medium Term:  S&P 500 (SPX): The index has broken above the 5,970 resistance level, with the potential to retest the February high of 6,147. However, volume—particularly as indicated by the Fund Flow Indicator (FFI)—needs to improve. If FFI remains weak, S&P 500 may face near-term consolidation or weakness. In the meantime, our Long-Term Cycle Indicator for US Equities has reverted to an upward trend. Bias remains bullish. Consider tactical longs above 5,970 targeting 6,147, with stops below 5,940.  Hang Seng Index (HSI): Hang Seng...

  Agricultural Bank of China (1288 HK) has completed a well-defined trading range breakout, closing firmly above the prior resistance at HK$5.14, which previously capped price action since April. The breakout is supported by strengthening technical indicators, suggesting the start of a markup phase. The breakout move is characterized by: -Strong daily candle with above-average volume -Momentum pickup on the stochastic oscillator -Price holding above the 13-day SMA Supporting Technical Signals Relative Strength (RS) > 0 vs Hang Seng Index Stock outperformed the broader Hang Seng Index, indicating increasing investors attention and a preference for Chinese financials. Fund Flow Index (FFI): FFI has turned positive, reflecting renewed buying pressure and accumulation after weeks of range-bound behavior. Above All-Time High: This breakout puts the stock above previous highs, with no immediate resistance ahead — opening the path for price discovery. Supporting Fundamentals: Policy T...

  Palantir (PLTR) – Anticipating Breakout Beyond All-Time High Technical Overview Palantir has formed a well-defined trading range below its previous all-time high of $125.00 , consolidating with low volatility over recent weeks. The latest breakout candle, supported by strong volume and upward momentum, suggests the potential beginning of a markup phase . This breakout is further validated by its ability to push above prior highs with increasing participation — a classic breakout signal in both price action and volume analysis . Technical Observations: Relative Strength vs. S&P 500: The RS indicator has turned positive (above zero), suggesting that Palantir is now outperforming the S&P 500 . This is a critical confirmation of strength in momentum-based strategies. Fund Flow Index (FFI): FFI remains strongly positive , indicating sustained institutional buying interest. The steady positive histogram supports the strength behind this move. Breakout Above A...

  Week Ahead: 2 June 2025 Deal or no deal—markets are bracing to ride the U.S. tariff roller coaster in the week ahead. On a brighter note, the U.S. April PCE report helped calm equities as inflation remained subdued despite renewed tariff concerns. Meanwhile, Singapore banks declined 0.60%–1.00% on Friday, following a dip in April bank loan growth after March’s record high. Medium Term:  S&P 500 (SPX): The S&P 500 rebounded from the 5,780 support level and is currently trading within the 5,780–5,970 range. With the Forward Flow Indicator (FFI) in positive territory, the outlook remains tilted to the upside. However, if selling pressure resumes, the next key support level is at 5,540. Hang Seng Index (HSI): Our China Market Long-Term Cycle Indicator continues to signal an upward trend for the HK/China markets. The Hang Seng Index (HSI) recovery remains intact. But our near-term outlook for the index is sideways, with potential support at the 22,750 level. Alternativel...