Month: December 2021

Adobe Inc (ADBE) – [ Chance to Accumulate? ]

Kelwin & Roy Adobe ,
28th December, 2021, 7:42 PM

Adobe Inc (ADBE) – [ Chance to Accumulate? ]Adobe 28th Dec 2022

Chart Source: Tradingview.com

Most of us should be familiar with Adobe and its wide range of products. It has recently pull backed due to its revenue forecast falling shy of analyst’s estimates.  The stock has fell about 22% since its high and has recent found support at $540.

With inflation concerns, it is important to focus on solid companies with good strong fundaments and wide economic moat like Adobe.  Investors are switching out of high-growth, high-multiple stocks and into sectors that are generally viewed as more resistant to inflationary pressures and rate hikes.

From the chart a nice accumulation phase between $540 to 575 range is a value buy. If Adobe starts to pullback a little that’s when an investor can take advantage of the downside and scale in. Some upside targets $636 then $670.

Downside support: $559, 540, 530, 525.

Yours

Humbly

Kelwin&Roy

Zscaler Inc ( ZS) – [Rebounding Nicely, Next Target?]

Kelwin & Roy Zscaler Inc ,
28th December, 2021, 3:46 PM

Zscaler Inc ( ZS) – [Rebounding Nicely, Next Target?] Zscaler Inc ( ZS) 28th Dec 2022

Chart source: Tradingview.com

Just under two weeks since our post on Zscaler Inc ( ZS) and we have seen it breaking that downtrend line we drew with an increase in volume. It has been included into the Nasdaq100 which probably could be one of the reason why there was such a huge volume as funds continue to buy into Zscaler.

It is now approaching our $335 rebound target which we might see some profit taking around this area. A further break of that area might see $356 first then $376. Remember, it doesn’t move in a straight line and some pullbacks are expected along the way.

Yours

Humbly

Kelwin&Roy

The Week Ahead (13) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , ,
26th December, 2021, 4:04 PM

The Week Ahead (13) – [STI, HSI, NASDAQ & S&P]

Markets started out shaky but gained firm footing towards the end of the week.  Despite more Omicron infection, markets staged a nice Santa rally with US markets nearing all time high once again. US markets looks like it might have a chance to make a new high just before the year ends! Keeping our fingers crossed!

Key Events to Watch For 

Tuesday – US CB consumer confidence, this measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism.

Wednesday – US Pending Home sales.

Thursday – Initial Job claims , this measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

Technical Levels to Watch For This Week

STI

STI as expected saw a push down on Monday but started recoverin towards the end of the day. Its trying its best to rebound but is now facing resistance at the 20ema. The general sentiment over in Asia is a little lacklustre with volume decreasing as traders take off for Christmas and year end break.  The resistance of around 3120 has to be broken before any bigger move to come. Aviation stocks are holding well despite VTL tickets being suspended for the time being. Sembcorp Industries is looking interesting.

HSI

HSI also started the week down breaking that 23k support level. It soon found support as the Santa rally started to gain momentum. It’s still under the uptrend line and would need to break above the 20ma (23618) and that downtrend line of around 24200 before any meaningful upside is to come. HK does look like its bottoming out. So keeping a lookout for it.

For more analysis on the US market , you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

Unity Software Inc (U) – [ One For The Metaverse]

Kelwin & Roy Unity , ,
22nd December, 2021, 6:46 PM

Unity Software In (U) – [ One For The Metaverse]

If you haven’t read our latest post on some of the stocks we’re looking at for the metaverse then you’re missing out! So click HERE to have a read and you’ll be introducing another company called Unity to look at for the metaverse.

Unity Software Inc. operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices.

In Q3 2021, Unity surprised investors with the acquisition of Weta Digital, a visual effects technology company, for $1.6B. Weta is expected to add $70M of revenue in 2022. This could help to drive unity forward in the creation of the metaverse.

Unity seems well-positioned to capture revenue streams from both building the digital infrastructure of the metaverse and participating in the NFT economy.

This stock is quite closely tied up with the future metaverse and with the recent pullback, this might offer a chance to jump in.

Unity Software 22nd Dec 2021

As there was much hype with the metaverse, we saw a push in unity’s price as investors got excited about the prospect for it. It has since corrected about 40% which might present a chance to start scaling in. The support of around $128 is holding well and we can also see that it has cut above the downtrend line. The current resistance is around $146 and a clear break of that with volume might see it move up in the near term. We’re looking at targets of $157 and then $173.

Keeping a look out!

Yours

Humbly

Kelwin&Roy

 

The Week Ahead (12) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Stock Market
19th December, 2021, 1:32 PM

The Week Ahead (12) – [STI, HSI, NASDAQ & S&P]

Markets ended the wild week on the down side after Fed’s statement of a faster tapering and more rate hike in 2022 initially sent the markets up but worries of a tighter monetary policy and the ongoing pandemic, leading to a losing week for the major averages.

Shares in Chinese healthcare and technology firms tumbled after a report that the United States would add more Chinese firms, including the largest commercial drone maker and biotech firms, to investment and export blacklists this week.

What a week it has  been.

Key Events to Watch For 

Tuesday – US producer price index , this measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation.

Wednesday – US core retail sales and US retail sales

Thursday – Initial Job claims , this measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

We need to see the support for S&P holding if we want to see any last minute rally for the year.

Technical Levels to Watch For This Week

STI

Chart source: AdvisorXs

STI wasn’t spared the sell down and is sitting precariously on its double support. The horizontal support and the uptrend support line. There is a volume increased which might favor the downside and if that support breaks it is possible for a retest of around 3033 area. Its not looking good for STI now. Be prepared for further downside. It couldn’t cross the 20ema which is not ideal. Only our banks saw a push up.

HSI

HSI started well, above that uptrend line we drew but couldn’t break the 20ema. It broke below the trendline support as more Chinese companies were added to the US blacklist. Tech stocks also took a hit as inflation concerns continue to linger. It was a nasty week for HSI. The immediate support is at 23k but it does look precarious too. The next support might be around 22399.

For more analysis on the US market , you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

Meta Platform (FB) – [Watching For That Break!]

Kelwin & Roy Meta Platform , ,
16th December, 2021, 9:37 PM

Meta Platform (FB) – [Watching For That Break!]

Chart Source: Tradingview.com

Meta Platform formerly known as Facebook probably needs no introduction. We’re watching for that break of that downtrend line of around $343.50 for a further upside. There is also a horizontal resistance around there so if that breaks a good chance for more upside. Volume increase is also important. A target to $355 then $360 will be on the cards.

Downside support at $337

Yours

Humbly

Kelwin&Roy

Riot Blockchain (RIOT) – [Time To Look At It? Here’s Why]

Kelwin & Roy RIOT BLOCKCHAIN , ,
16th December, 2021, 9:26 PM

Riot Blockchain (RIOT) – [Time To Look At It? Here’s Why]

As you know, the crypto world is fast gaining more acceptance and more and more investors are looking towards crypto currency as another source of investment asset. We won’t cover in detail the risk and all in investing in Crypto but if you’re looking to have some exposure to Crypto then such crypto related companies might be one way. Coinbase, Marathan Digital are a few such companies related to the crypto space.

Riot Blockchain, Inc., together with its subsidiaries, focuses on cryptocurrency mining operation in North America. The company primarily focuses on bitcoin mining. As of December 31, 2020, it operated a fleet of 7,043 miners.

Its price as we can see fluctuates quite a bit due to bitcoin’s prices. So do expect that RIOT will have a lot more whipsaw in the future.

As the markets are adopting more to crypto, its growth revenue is expected to grow faster than 20% per year. Its growth earnings are also expected to grow significantly over  the next 3 years.

Lets take a look at the chart to see where RIOT is now

Chart Source: Tradingview.com

Riot has retraced close to 70% since its high in Feb and about 45% since its high in Nov partly due to the drop in Bitcoin prices and also negative sentiment during this period. It has actually retraced to a nice level of support of around $23.50 which is also around the horizontal support which we drew. The lower end of the support is at $22.30 and then $19.80. It is near the bottom area which we feel that it might have some value in picking up some shares at this current juncture. A break of $25.90 might see it move up to $30 then $33. It is also dependent on the Bitcoin market so if that moves up we might see a good run up for RIOT too! Keeping a close eye on this! Are you?

Yours

Humbly

Kelwin&Roy

 

Zscaler Inc ( ZS) – [Added to the Nasdaq-100 Index, Whats The Outlook?]

Kelwin & Roy Zscaler Inc ,
16th December, 2021, 5:07 PM

Zscaler Inc ( ZS) – [Added to the Nasdaq-100 Index, Whats The Outlook?]

Zscaler, Inc. operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, Internet of Things device secure access to externally managed applications, including software-as-a-service (SaaS) applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.

And on 10th Dec, Nasdaq has announced that Zscaler the leader in cloud security will be included in the Nasdaq-100 Index effective prior to market open on Monday, December 20, 2021. It is always a milestone for any company to be included in the Nasdaq 100 and its a mark  of trust and growth for the company.

In the recent weeks, ZS has been sold down due to inflation worries which might present a good opportunity to scale in. It has corrected about 25% since the high and have found some support at around $273.

With an inclusion, we might see more funds buying ZS in order to replicate the Nasdaq100 which could push the price up in the coming days.

Lets take a look at the chart for more details.

Chart source: Tradingview.com

There is a double top formed from Nov to Dec which is a potential resistance and if ZS is unable to cross could spell more downside.  Currently it is being resisted by the downtrend line we have drawn and a break of that resistance might see it push higher. We would like volume coming in in order to sustain the rally and push it up to $335 level.

It has to break that for ZS to remain strong if not that might be the temporary end of the rebound. Zscaler is showing good value at current price.

Yours

Humbly

Kelwin&Roy

The Week Ahead (11) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy STI , ,
12th December, 2021, 10:02 PM

The Week Ahead (11) – [STI, HSI, NASDAQ & S&P]

It was a week of rebound as we saw markets having a rebound after the omicron scare. If you follow our post last week you would have read that we were expecting a rebound given that the greed & fear was at the extreme fear side. 😀

The S&P 500 and Nasdaq Composite added 3.8% and 3.6%, respectively, last week — the best since February for both indexes.

Are we setting ourselves up for a year end rally? Read on to find out more! But before that, lets see what are the key events to watch out for this week.

Key Events to Watch For 

  1. The Fed will hold its final meeting of the year on Tuesday and Wednesday and Chair Jerome Powell and his colleagues are expected to discuss accelerating the wind-down of the central bank’s $120 billion a month pandemic-era asset purchase program. This might cause some volatility in the markets as they look to see what will Powell do with regards to inflation which can no longer be ignored.
  2. The U.S. is due to release data on producer price inflation on Tuesday, which will be crucial to see how inflation is like and market might react to it too.

Technical Levels to Watch For This Week 

STI

STI also saw a rebound too as banks, commodities saw some bargain hunting. STI punched through the 5ema, gaining grounds above that uptrend support. It came very close to our first rebound target of the 20ema at 3160 level. For this week, we might see some profit taking and a test of that 20ema. A break might take us to 3208. 20ema is usually not an easy resistance to break so it’ll require some good momentum to push it through it! We’re still bullish for a year end rally! But if STI can’t pass the 20ema it might start to gather around 3130 area to store some energy before a move.

HSI

HSI was off to a shaky start but the support held well and we saw an eventual rebound that came for the week. HSI is halfway through the rebound and its sitting just at the uptrend which we drew. We might see a further push to 24667 if events this week don’t give markets any scare as Fed start their last meeting for the year!

For more analysis on the US market , you can click HERE!

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

CrowdStrike Holdings (CRWD) – [Ready To Strike?]

Kelwin & Roy Crowdstrike ,
9th December, 2021, 7:29 PM

CrowdStrike Holdings (CRWD) – [Ready To Strike?]

CrowdStrike Holdings, Inc. provides cloud-delivered solutions for endpoint and cloud workload protection in the United States, Australia, Germany, India, Israel, Romania, and the United Kingdom. It offers 19 cloud modules on its Falcon platform through a software as a service subscription-based model that covers various security markets, such as corporate workload security, security and vulnerability management, managed security services, IT operations management, threat intelligence services, identity protection, and log management. The company primarily sells its platform and cloud modules through its direct sales team.

CrowdStrike recently reported its results and it delivered yet another strong quarter though its stock took a noisedive, well thats the market for you. =)

Crowdstrike has corrected over 30% from its high and is it a time to look at it now? Lets take a look.

Crowdstrike 9th Dec 2021

Chart source: Tradingview.com

We can see that Crowdstrike slammed down around $185 and have since staged a strong rebound. We are still early in this rebound and might see further upside. A safer entry might be when Crowdstrike breaks the horizontal resistance of $213.26 also around the downtrend resistance line or if it pull backs to around $200. Our upside resistance is $235 and then $247.

Crowdstrike does look their is value emerging at this price point and long term holders might want to consider scaling in too.

Yours

Humbly

Kelwin&Roy