Week Ahead: Technicals Supporting National Day Rally to Continue for Straits Times Index (STI)

Week Ahead: 14 July 2025

Trump-Powell drama may spill into the week ahead, but markets remain firm on expectations of two 25bp rate cuts in 2H 2025. We are also monitoring GENIUS Act and its potential impact on crypto and stablecoins.

US markets hovers near record highs with Nvidia receiving approval to resume exports of its H20 chips to China. However, exhaustion gap was observed on NVDA stock price. While we are not turning bearish, we are watchful for any indications of selling.

There’s a market saying: “大礼二十” (The 20% Big Gift). When a price breaks to new highs, there is often a tendency for an additional 20% upside beyond the ATH. Recent example, Bitcoin having breached the USD100,000 mark, it advanced to USD120,000. Could the STI’s breakout above 4,000 be pointing to 4,800?

Short Term:

S&P 500 (SPX): The S&P 500 continues to consolidate near the 6,300 resistance zone. We are monitoring signs of either supply or demand that could indicate the next short-term directional move. The upside target is set at 6,600, while downside support is identified at 6,150.

Short-term traders should wait for confirmation of either a breakout or breakdown.

Hang Seng Index (HSI): The Hang Seng Index (HSI) is approaching 25,000 resistance level, corresponds to 1.618 Fibonacci zone. Trading demand is encouraging. Break above 25,000 will see the index advancing towards 26,000 level, also 2.618 Fibonacci extension level. Downside support is located at 24,200.

Traders may consider long entries on breakout confirmation, with stops below 24,800.

Straits Times Index (STI): Straits Times Index (STI) momentum persists, and we expect the index to trade towards the 4,300 target. Immediate support is at 4,100 level.

Traders can continue to identify trade opportunities, while investors add on selectively on pullbacks.

Long Term:

S&P 500 (SPX) Upward Trend

Hang Seng Index (HSI) Upward Trend

Straits Times Index (STI) Uptrend Trend

Headlines Next Week:

US Corp Earnings: Alphabet, Tesla, Coca-Cola, IBM

SG Corp Earnings: Mple Log Tr, HPH, FCT, iFAST, Keppel DC Reit, Mple Ind Tr, SIA

US: Jul PMIs, mfg surveys, Jun durable goods,

China: LPR fixings, EU-China summit

Singapore: Jun CPI, IP, MAS policy release window.

Disclaimers apply

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