kelwin and roy

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , , , ,
16th January, 2022, 4:55 PM

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

Red hot inflation numbers and fed’s hawkish stance continue to worry markets in US. Despite that, markets in Asia performed better with STI performing very well and hitting our upside targets. Investors came out of growth and tech stock and seek safer more stable asset.

Key Events to Watch For 

Monday – China GDP

Technical Levels to Watch For This Week

STI

Great showing by STI but manly driven by the three local bank as their combine weightage is close to 50%. STI has exceeded our weekly upside target and a pullback is healthy so that investors who missed this ride can hop on soon. Next upside resistance at 3283-3295 which is close to the 3300 psychological barrier. A pullback to around is healthy for the markets.

HSI

As mentioned last week, don’t give up on the HSI yet, although it was one of the worst performing index, we might see a rebound in HSI this year.

It saw a nice move for last week and came close to our upside target of 24600. It tested the 5ema and closed above it on Friday which is a positive sign for us. We’re looking at more upside before HSI takes a break as with any markets, it doesn’t go up in a straight line.

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

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , ,
9th January, 2022, 9:51 PM

The Week Ahead Jan 2022 – [STI, HSI, NASDAQ & S&P]

We have ended the first week of January but not on the best foot as markets were generally down. Surge in the 10 year yield, increasing in Omicron cases caused some pullback especially in Nasdaq. Investors came out of growth and tech stock and seek safer more stable asset. Asia markets had a better showing this week.

Key Events to Watch For 

Tuesday – Fed Chairman testimony . This session highlights the  economic outlook and recent monetary policy actions before the Joint Economic Committee, in Washington DC. The testimony is in two parts; the first is a prepared statement, then the committee conducts a question and answer session. The Q&A portion of the testimony can see heavy market volatility for the duration.

For More Key Events head over to our Facebook page.

Technical Levels to Watch For This Week

STI

STI did surprisingly well after staying above the 20ema which we mentioned and moved up to our next upside target of 3208. This is mostly led by the banks as rising interest rates would benefit the banks NIM furthermore, our STI component is heavily slanted on the three local banks. We might see STI moving higher next week as banks continue to hold up the index. 3234 is our next upside target.

Commodities and property counters are coming back to play.

HSI

HSI has rebound and close above the 20ema a positive sign for us even with the negative sentiments floating around. Don’t dismiss the Hong Kong yet as it might surprise us on the upside this year as China tries to stabilize its market. It is consolidating at the 23k area and we might see HSI move higher in the coming weeks.  Some Hong Kong Tech stocks are see some rebounding especially Alibaba which has been beaten down over 50%. If HSI manages to break above 23647 area we might look at around 24k then 24600.

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

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

 

Salesforce (CRM) – [ Why We’re Looking At It, Should You Too?]

Kelwin & Roy Stock Market ,
6th January, 2022, 7:48 PM

Salesforce (CRM) – [ Why We’re Looking At It, Should You Too?]

Salesforce.com (NYSE:CRM), the industry leader in cloud-based customer relation solutions, provides enterprise cloud computing solutions focused on customer relationship management (CRM).

It has recently fell over 25% from Nov high due to its latest earnings and guidance that was released on 30th Nov. Investors were disappointed and selling took place. The fall from last night could be due to  an analyst Karl Keirstead of UBS downgrading shares from buy to neutral, and decreasing the one-year price target from $315 to $265.

In July2021, Salesforce completed the Slack acquisition setting the company up as a juggernaut of the workforce communication solutions. Its future is looking brighter!

Salesforce posted a record $6.86 billion in top-line revenue in third-quarter fiscal 2022, up from $5.42 billion for the same period in the prior year and an increase of 27%. For the full fiscal year 2022, Salesforce expects revenue of $26.4 billion, a 24% jump from fiscal 2021. Revenue is expected to reach $31.7 billion to $31.8 billion in fiscal 2023.

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At current price, Salesforce is about 20% undervalued which represent a good opportunity to scale in.

The company has a history of growing acquisitions by integrating them into its cohesive ecosystem of offerings. This bodes well for the Slack acquisition, which closed in fiscal 2022. The goal of $50 billion in sales by fiscal 2026 is well within reach as revenues continue to grow impressively.

Salesforce is a leader in its industry and will continue to execute and make gains for shareholders in the future despite the short term pull back.

Technical Perspective 

We can see that the moving averages are sloping down which to conventional teaching means bearish. But if you’re a long term investor, these wouldn’t matter too much especially if you’re investing in a solid company. A good point to scale in could be around $222-230 level as a first batch. Should the support of $222 don’t hold, the next level might be around $208 where an investor can consider a second batch entry. $200 seems a bit tougher unless we see a big pullback in the markets. Investors might take this short term pullback to scale in to good solid companies.

For traders, an entry at the support would provide a good risk reward ratio as indicators are starting to signal an oversold situation too.

Are you watching Salesforce?

Yours

Humbly

Kelwin&Roy

Sembcorp Industries – [Heavy Volume Today, Still Can Chase?]

Kelwin & Roy Sembcorp Industries , , , , , , , ,
6th January, 2022, 5:04 PM

Sembcorp Industries – [Heavy Volume Today, Still Can Chase?]Sembcorp Industries 6th jan 2022

Chart source: AdvisorX 6th Jan 2022

Sembcorp Industries saw a big move today together with an increase in volume. This move came on an unexpected day where US closed red and more talks of a faster rate hike. Overall sentiments were negative but this came as a positive surprise as Sembcorp Industries was holding well. Big Chunks were eaten and if one was not fast enough then this might have been a missed trade.

From the above, we alerted our clients about a week back when Sembcorp Industries had a first break of its downtrend line at $2.02. We saw a nice 5% upside hitting our second target of $2.12 and then witnessing a pullback now. We probably wouldn’t want to chase this trade given the not so strong sentiments out there. In fact, this was one counter which we mentioned in our post previously to take note off, so hopefully most would have gotten in earlier. Taking some profits off the table might be wise given markets don’t have a strong follow through.

If Sembcorp industries manages to stay above $2.12 then we might consider a re-entry.

Missed out on this trade?

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Yours

Humbly

Kelwin&Roy

 

 

CapitalandInvest (9CI) – [New HIGH For the New Year! Our Next Target?]

Kelwin & Roy Capitaland Invest , , , , , , , , ,
4th January, 2022, 5:12 PM

CapitalandInvest (9CI) – [New HIGH For the New Year! Our Next Target?]

Capitaland invest 4th Jan 2022

Chart Source: Tradingview.com

Great start to the new year as we saw Capitaland Investment Ltd making a new high today! It had consolidated more than 2 months and finally shown a great move! Another catalyst might be a local brokerage has reinitiate ‘buy’ on Capitaland Invest with a $4 target. And why are with happy with that? Simple, as we saw movement in Capitaland Invest, watching it break the downtrend line, we notified our Clients about this. We’re glad that with the observation it finally moved up after such a long consolidation. As Capitaland Invest is part of the STI component, that is why we’re seeing the STI moving higher together with the banks.

Our first two upside resistance target has been met and our third one might be around $3.78 area. Its about 24 cents from the previous resistance and the previous support. So we might see more upside in the coming days.

Missed out on this trade?

Don’t want to miss out on another trade alert? Want to know what stock we’re looking at next?

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Yours

Humbly

Kelwin&Roy

The Week Ahead 2022 – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy STI , , , ,
2nd January, 2022, 4:21 PM

The Week Ahead 2022 – [STI, HSI, NASDAQ & S&P]

Bye bye 2021 and hello 2022! S&P finished well for the year with nearly 27% gain ?as it closed near record high! It has been a good year for the markets and we hope that you managed to benefit from it too! Going into 2022 we might not see such gains but none the less we’re here to navigate through the times with you! Rising inflation, fed tapering, increasing interest rates and Omicron are some issues markets will have to deal with coming this year.

Key Events to Watch For 

Tuesday -Wednesday – ADP Nonfarm Employment Change (Dec)

Thursday – Initial Jobless Claims , ISM Non-Manufacturing PMI

Friday – Nonfarm payrolls, Unemployment rate

Technical Levels to Watch For This Week

STI

STI had a decent gain for the year of around 9% not too bad given STI’s reputation. Well, at least it out performed HSI and didn’t get mentioned as the worst performing index. So something to be thankful for!

As we head into the new year, there is some growing optimism for Singapore as we are recovering from Covid-19 and trying to open up as much. With VTLs currently being suspended, it will take awhile before we turn the corner again. Also, Singapore is bracing for more omicron cases which might delay some progress in this area.

From the technical point of view, STI closed just at the 20ema but we would want to see a nicer closing candle for more upside to happen. With that our next upside target is around 3168. Electronic stocks are showing signs of rebound. Stocks like ISDN, UMS, AEM are currently in play.

HSI

One of the worst performing index is the HSI. It started off well but ended the year down close to 13%. It is still below our uptrend line but it did hit the long term uptrend line over HERE. It is still below the 20ema and unless it can break above that then we might see a nice rebound for the start of the year. A rush of short covering and bargain hunting probably caused a nice bump up towards the end of the week.

Upside resistance of 24000 is our first target.

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

Have a good week ahead!

Yours

Humbly

Kelwin&Roy

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