Good Morning and its the last week of October! How time flies some might say! Its about slight more than 2 more months before we end the year so make full use of what this year has to bring!
We know many people are sian about the recent covid restrictions, lets keep our heads up and spread positive vibes as much as possible! Encourage one another, call in a friend to see how he or she is doing! Keep the spirits up!
Recap for STI & HSI
For our local market, STI touched our 3200 resistance up rebounding about 3% since breaking our trendline just two weeks ago. Positive sentiments from the US continued to pour over which helped push our market up. Penny stocks saw another round of movement, so for those who likes to play penny stocks, the past week was probably a good one for you. Sembcorp Industries also saw some action this week.
Over at Hong Kong side it has also reached our resistance of around 26222 area with continual rebound from the tech and EV sectors. Evergrande paid out its bond coupon last week, buying it time to wrestle with a debt crisis looming over the world’s second biggest economy. It also resumed work on more than 10 of its property projects. Some good news but do be cautious especially for traders as HK market has rebound off the lows and some pullback might be seen soon.
Key Events to Watch For
- Big Tech earnings! Four out of the five FAANG stocks are set to report earnings during the week – Facebook. This could set the tone for tech stocks.
- U.S. GDP .Data on Thursday is expected to show the extent of the headwinds that hit the U.S. economy in the third quarter. Economists are forecasting that GDP growth slowed to 2.8% from 6.7% in the previous three months. Other data to look out for would be initial jobs claims on thursday and friday’s core PCE price index.
- Continual monitoring of the 10 year yield. Its at the highest for the month of Oct and given Nasdaq is coming close to its ATH and S&P breaking its ATH, markets might slow down a little.
Technical Levels to Watch For This Week
STI
Chart Source: AdvisorXs 24th Oct 2021
STI continues to power through the week hitting to the round number resistance of 3200 and close slightly below it for the week. It actually rebound off the 5ema which shows some strength. The momentum does looks like its slowing down and with an month of an extension of covid regulations, markets might have some mini reactions to it. It STI manages to hold above the 5ema we might see near term upside resistance to 3230 area where more profit taking might come in. For traders, we might not want to be over aggressive as markets in US are also near or at all time high. So some pullback is not too much to expect.
HSI
HSI has also seen strength rebounding to our upside resistance of 26222. It is currently hovering near this resistance and a break above this might it move to 26834 area. Profit taking might soon come in too as market has rebound for about 2 weeks plus. Keep a look out! EV stocks like geely and BYD has seen a nice move up together with the usual tech suspects. Most tech stocks also are seeing some profit taking as they have rebound for the last few weeks too. Looking for it to stabilize before planning a move again.
Trade safe and remember to have a sound trade plan!
To know more about the outlook for S&P and Nasdaq, just CLICK HERE!
Have a good week ahead! Drop us a message if you want to discuss further!
Yours
Humbly
Kelwin&Roy
