Week 41 Market Roundup — is all time high feasible for S&P 500?
The stock market in general climbs higher with
RTY1!
Russell 2000 leads the rally and N NASDAQ is lagging behind among the 4 major indices. In Week 40 market round up, I have analyzed 3 possible scenarios while I favor the second and the third, which are the bullish case based on the price structure and the supply and demand despite the bearish sentiment casted by the White House COVID-19 Cluster. I have subsequently updated in the my video — where the stock market is heading on 8 Oct 2020 and how to seek confirmation for the cases I assumed.
As shown in the chart, Russell 2000 (top right)has recovered all the losses suffered since 2 Sep 2020 market correction while
ES1!
S&P 500,
YM1!
Dow Jones recovered almost 2/3.
Despite the relatively threatening selloff on 6 Oct 2020 due to Trump refused to continue negotiating the COVID-19 relief package until the election is over, the market is still able to recover quickly. S&P 500 is currently testing the resistance zone at 3480 and is likely to test the all time high level once it can clear the resistance zone.
Apart from Russell 2000, I would like to share one industry group that is outperforming the market. There could be some potential trading opportunities lies on these group such as DJUSAF (Dow Jones U.S. Delivery Services Index). Stocks in focus: EXPD, ATSG, FDX, UPS.
Check out last week market analysis video series below if you haven’t or would like to reflect on how last week unfold together with your preparation and analysis:
Market analysis on 5 Oct 2020 - Trading the falling wedge pattern with the right context
Market analysis on 6 Oct 2020 - Breakout trading - A simple way to increase winning rate
Market analysis on 7 Oct 2020 - Pullback trading strategy with high winning rate
Market analysis on 9 Oct 2020 - One thing that every trader should do when trading pullback
Stock Watchlist — Malaysia
VS
(V.S INDUSTRY BHD) — Supply has been decreasing while consolidating in a shallow range. All time high at 2.43 is likely to be achieved.
JHM
(JHM CONSOLIDATION BHD) — symmetrical triangle pattern (apex formation) is about ripe to breakout with decreasing supply. A break above 1.78 could see JHM to test 2.0.
FRONTKN
(FRONTKEN CORPORATION BHD) — Supply has been decreasing together with the volatility, which are bullish characters for stocks. A break above 3.75 could see FRONTKN to test 4.0 and beyond.
FPGROUP (FOUNDPAC GROUP BERHAD) — Supply has shown up upon testing the resistance at 1.07.A break above 1.07 is needed to challenge higher resistance at 1.20.
MI
(MI TECHNOVATION BERHAD) — the price structure is similar to FRONTKN. It is still within a trading range between 3.7–4.4. It is likely to challenge to break all time high at 4.65.
PENTA
(PENTAMASTER CORPORATION BHD) - Supply has emerged after hitting the all time high level. Currently it is in the progress of supply absorption and a possible pullback to test the support level at 5.0.
Stock Watchlist — US
MSFT
(MICROSOFT) — a break above 217 could see MSFT to test 230. Support is at 198.
META
(FACEBOOK) — trading range between 250–279.
SE
(SEA Limited) — Again, this strong stock breaks above all time high. As long as the support at 165 is being held, SE will move higher.
JD
(JD.com) — It just broke out 78. JD is likely to test 86.
NET
(CLOUDFLARE) — Hit all time high. It will trend higher if 42 support can be held.
NASDAQ:LVGO (LIVONGO HEALTH) — Potential supply absorption in progress. Likely to test and break above 150.
PTON
(PELOTON) — Hit all time high. Support is at 100. Climatic run up is vulnerable for a correction. Watch out for a change of character bearish bar to stop the up move.
BABA
(Alibaba Group Holdings) — The target (299)mentioned last week has been achieved. Support levels at 282, 267.
BTG
(B2GOLD CORP) — A break above 7 could see BTG to test 7.5.
FSLY (FASTLY INC) — Hit all time high. Support is at 118, 103.
SQ (SQUARE INC) — Hit all time high. Support is at 170, 158.
APPS
(DIGITAL TURBINE INC) — APPS is still holding above the support at 35. More upside is expected.
AVGO
(BROADCOM INC) — AVGO hits all time high. Further upside is expected.
PENN
(PENN NATIONAL GAMING INC) - PENN is still in correction mode. Support is at 58–62.
Study their charts and you should find them interesting in terms of price structure and volume signature.
RTY1!
Russell 2000 leads the rally and N NASDAQ is lagging behind among the 4 major indices. In Week 40 market round up, I have analyzed 3 possible scenarios while I favor the second and the third, which are the bullish case based on the price structure and the supply and demand despite the bearish sentiment casted by the White House COVID-19 Cluster. I have subsequently updated in the my video — where the stock market is heading on 8 Oct 2020 and how to seek confirmation for the cases I assumed. As shown in the chart, Russell 2000 (top right)has recovered all the losses suffered since 2 Sep 2020 market correction while
ES1!
S&P 500,
YM1!
Dow Jones recovered almost 2/3. Despite the relatively threatening selloff on 6 Oct 2020 due to Trump refused to continue negotiating the COVID-19 relief package until the election is over, the market is still able to recover quickly. S&P 500 is currently testing the resistance zone at 3480 and is likely to test the all time high level once it can clear the resistance zone.
Apart from Russell 2000, I would like to share one industry group that is outperforming the market. There could be some potential trading opportunities lies on these group such as DJUSAF (Dow Jones U.S. Delivery Services Index). Stocks in focus: EXPD, ATSG, FDX, UPS.
Check out last week market analysis video series below if you haven’t or would like to reflect on how last week unfold together with your preparation and analysis:
Market analysis on 5 Oct 2020 - Trading the falling wedge pattern with the right context
Market analysis on 6 Oct 2020 - Breakout trading - A simple way to increase winning rate
Market analysis on 7 Oct 2020 - Pullback trading strategy with high winning rate
Market analysis on 9 Oct 2020 - One thing that every trader should do when trading pullback
Stock Watchlist — Malaysia
VS
(V.S INDUSTRY BHD) — Supply has been decreasing while consolidating in a shallow range. All time high at 2.43 is likely to be achieved.
JHM
(JHM CONSOLIDATION BHD) — symmetrical triangle pattern (apex formation) is about ripe to breakout with decreasing supply. A break above 1.78 could see JHM to test 2.0.
FRONTKN
(FRONTKEN CORPORATION BHD) — Supply has been decreasing together with the volatility, which are bullish characters for stocks. A break above 3.75 could see FRONTKN to test 4.0 and beyond. FPGROUP (FOUNDPAC GROUP BERHAD) — Supply has shown up upon testing the resistance at 1.07.A break above 1.07 is needed to challenge higher resistance at 1.20.
MI
(MI TECHNOVATION BERHAD) — the price structure is similar to FRONTKN. It is still within a trading range between 3.7–4.4. It is likely to challenge to break all time high at 4.65.
PENTA
(PENTAMASTER CORPORATION BHD) - Supply has emerged after hitting the all time high level. Currently it is in the progress of supply absorption and a possible pullback to test the support level at 5.0. Stock Watchlist — US
MSFT
(MICROSOFT) — a break above 217 could see MSFT to test 230. Support is at 198.
META
(FACEBOOK) — trading range between 250–279.
SE
(SEA Limited) — Again, this strong stock breaks above all time high. As long as the support at 165 is being held, SE will move higher.
JD
(JD.com) — It just broke out 78. JD is likely to test 86.
NET
(CLOUDFLARE) — Hit all time high. It will trend higher if 42 support can be held. NASDAQ:LVGO (LIVONGO HEALTH) — Potential supply absorption in progress. Likely to test and break above 150.
PTON
(PELOTON) — Hit all time high. Support is at 100. Climatic run up is vulnerable for a correction. Watch out for a change of character bearish bar to stop the up move.
BABA
(Alibaba Group Holdings) — The target (299)mentioned last week has been achieved. Support levels at 282, 267.
BTG
(B2GOLD CORP) — A break above 7 could see BTG to test 7.5. FSLY (FASTLY INC) — Hit all time high. Support is at 118, 103.
SQ (SQUARE INC) — Hit all time high. Support is at 170, 158.
APPS
(DIGITAL TURBINE INC) — APPS is still holding above the support at 35. More upside is expected.
AVGO
(BROADCOM INC) — AVGO hits all time high. Further upside is expected.
PENN
(PENN NATIONAL GAMING INC) - PENN is still in correction mode. Support is at 58–62. Study their charts and you should find them interesting in terms of price structure and volume signature.
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