By Danish Lim Zhi Lin, Investment Analyst
Current Performance of SGX Nikkei 225:
As of 26 June, at 10:40 SGT, the SGX Nikkei 225 Index Futures contract was up by 1.52%, led by
semiconductor-related stocks Tokyo Electron and Advantest. Sumitomo Pharma surged following
reports it is considering layoffs and a new plant. This would mark the 3rd consecutively...
By Danish Lim Zhi Lin, Investment Analyst
Current Performance of SGX Nikkei 225:
The SGX Nikkei 225 Index Futures contract underperformed in April (-5.03%) and was nearly flat in May (-0.05%) as the rise in 10-year JGB yields following the BOJ’s March and May meetings weighed on semiconductor names and other growth stocks.
Impact of Yen Depreciation:...
By Eric Lee , Sales Director from Phillip Nova
50-day Moving Average and Historical Scenario
The 50-day moving average often serves as a key consolidation level for the Nikkei 225.
Historically, after significant up or down movements, the index tends to consolidate around
this average before resuming its trend. A notable example occurred between mid-July...
The EURUSD has been consolidating in a diamond formation since a week ago after bouncing off the April bottom around 1.0602. Diamond pattern, when identified after an uptrend, suggests that prices tend to reverse to the downside. Since 8 March, the EURUSD has been on a broader downtrend and the rally since mid April could be a pullback within the broader...
On weekly chart, the USDJPY continues soaring after a bullish breakout from a long term ascending triangle formed since 2022. The bullish breakout occurred on 10th of April when the pair decisively pierced above the 152 resistance zone, and the breakout with an upside target of 176 (measured by triangles height) remains valid as the subsequent weeks continued...
From a technical standpoint, prices have consolidated into a bull flag consolidation pattern since 14 March, breaking out of the flag resistance (orange trend channel) yesterday, albeit with normal volume. This localised breakout coupled with the breakout of the long-term parabolic bowl accumulation pattern at 4,150, a pattern forming since July 2023, signalled a...
Gold surged above $2286 per ounce, marking yet another milestone in its remarkable ascent. This surge has persisted for two consecutive trading days, underscoring the enduring strength of the precious metal.
The driving force behind this meteoric rise is the mounting anticipation of an imminent interest rate cut by the US Federal Reserve in June. Such a move is...
Our View:
The SGX FTSE Taiwan Index Futures contract has been making new all-time highs, powered by the AI frenzy.
A key characteristic of the underlying index is its tech-heavy composition , where technology (61.36%) is by far the largest sector.
This is well above the S&P 500’s technology weightage of 29.83%.
Top holdings in the index include foundry giant...
From a long-term perspective, Oil, in this case, we use the Brent Last Day Financial by NYMEX CME, overall is trending downward!
It would be tempting to initiate a “sell on rise strategy” especially when a long term trend line (in blue) is challenged. The trend line majors the historical highs of Brent (BZ) as well as Crude (CL) since the second all-time-high...
AUDUSD: Potential Short Opportunity at February Peak
The AUDUSD broke out from a rising wedge yesterday and rapidly rose by 1% to hit the 0.658 mark, which is the second peak of the rising wedge pattern. Since then, the pair has retraced and is consolidating below the resistance zone. In the event of another impulsive spike towards the top of the rising wedge...
Oil reversed gain quickly after the multifaceted sword chopped whatever little was left of supply-side momentum, keeping Oil prices afloat. The US labor market’s resilience pushed back hopes of potential “FED Monetary easing” until the second half of the year while the budding US banking crisis shook the ground beneath Oil prices.
Technically, Brent tried to...
AUDUSD is on track to completing a large head and shoulders pattern that has formed since November 2023. On the 4 hourly chart, the pair broke down from the pattern on 1st Feb but rebounded sharply to close the day in the green. Despite the rebound, the overall bearish reversal pattern remains intact with a high probability for the AUDUSD retracing from current...
GBPUSD has been consolidating in a descending triangle formation since late December after an uptrend throughout November and December 2023. The pair is currently struggling around the upper resistance zone of the descending triangle. We anticipate a retracement to the support zone of the triangle pattern around 1.2613.
🔴 Sell Entry: 1.2747
🎯 Target: 1.2613
⛔️...
After breaking down from a bear flag formation on 16 January, EURUSD consolidated in another similar pattern in the past week. The pair has been on a downtrend since last December and the back-to-back occurrence of the bearish continuation pattern (bear flag) reinforces the bearish outlook for the next two weeks.
At the time of writing, the pair is hovering...
Our View:
The S&P 500 E-mini Futures hit a new all-time high last Friday, powered by tech shares and AI optimism, as the contract breached the key 4,800 level to confirm a bull market rally from its October 2022 low.
Nevertheless, given recent pushback from Fed officials and a resilient labour market, we think investors may have gotten ahead of themselves in...
FCPO has been in consolidation mode for quite some time and has formed a descending triangle. Following 7 straight days of green daily candles, it is becoming clearer that upside breakout of the declining resistance trend line is possible as bulls push forth steadily.
How do we then capitalise on it?
Consider the plan below :
Entry : Buy 2x number of lots at...
After depreciating steeply between 28 Dec 2023 and 3 January 2024, the EURUSD rebounded and has been consolidating in a rising channel. On the 4-hour chart, we observe a bear flag formation that is identified by a steep downward price movement followed by a rising channel.
Should prices rise to 1.1008 zone (R1), it would serve as an attractive entry for a short...
Our View
We have a favourable view of Emerging Market (EM) equities, but we prefer to wait out any short-term corrections and enter only after prices have bounced off support.
The MSCI EM Futures contract could see a bumpy start to 2024, but we expect to see further upside through 2024, supported by a depreciation in the USD once the Fed cuts interest rates...
