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

BYD Co (1211:HK) Witnessing Signs of Strength

BYD Co (1211:HK) Witnessing Signs of Strength On Friday, we observed strong buying within a wide trading range, with the stock closing near the day’s high and good volume recorded. The previous two days of selling showed relatively low volume, indicating potential supply exhaustion. The stock price is currently at a key resistance level, constrained by a downward trendline and a horizontal support-turned-resistance line. A breakout above this level could signal a potential trend reversal , with an initial technical price target of HK$300.00. The stock is outperforming the broader market, indicating strong market demand, as evidenced by our proprietary Relative Strength Indicator (RSI), which is above zero. Additionally, the volume momentum indicator (FFI) is improving, further supporting the possibility of supply exhaustion. The Stochastic indicator also continues to trend higher, reinforcing a bullish outlook. A stop-loss price is set below HK$248.40 . If the price falls below this l...

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

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