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
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
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. 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.
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
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
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, 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.
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
The Omicron variant still dominating headlines as the world comes to grips with this new variant and scramble to try to contain it. There is still much to understand regarding this variant and its still early to that we’re out of the woods.
Some updates on Omicron that we know so far :
And with about a week into the news of Omicron markets have slammed down as mentioned in our previous post. In addition to that, Fed has also mentioned about quickening their tapering program! These mix caused the markets to tanked BUT there are some interesting opportunities lying around the corner.
In fact, the greed and fear index is actually almost at the extreme fear side which might spell some opportunities for the sharp eye! This is by no means an indicator to buy but if you observe from past history whenever the Fear & Greed hits the extreme, market tends to rebound. A SANTA rally could still be possible!
Quoting from Warren Buffet, “Be fearful when others are greedy. Be greedy when others are fearful.” Look for great companies like APPLE, META, AMAZON, TESLA, VISA and even ALIBABA for opportunities to scale in!
Recap for STI & HSI
As expected both markets has slammed down hard over the week BUT has come to our level of support. Electronic stocks in Singapore gave us a surprise and held up well while the general market shifted into negative territory.
Alibaba took center stage as it continue to move down. Didi has also announced its delisting on the US stock exchange which sparked a sell off on China stocks listed on the US exchange on fear of more delisting.
Technical Levels to Watch For This Week
STI
Our 3033 support held well and we can see STI is trying to rebound and is currently resisted by the 5ema. A break above that might it move to around 3160 level. Downside support at 2994. Banks are leading this rebound.
HSI
HSI has also come down to our support and it does look like it might have some room for rebound. If it can start trading back into that uptrend line then we might see HSI going for a rebound in the near term, if not our next support level is around 22530.
For more analysis on the US market , you can click HERE!
Have a good week ahead!
Yours
Humbly
Kelwin&Roy
By now you should have come to know of the new variant of concern OMICRON! Its splashed across all new agencies and have caused quite a bit of alarm in the world! Even in Singapore PM Lee said that Singapore must be mentally prepared for “more bumps along the road” as it deals with an evolving virus. We might be forced to take steps back before moving forward again. ?
It is the fifth variant of concern that has emerged since the pandemic first gripped the world almost two years ago. The highly transmissible Delta variant was declared a variant of concern in 2021.
We’re not scientist and are just making sense of whatever news that have been released so far so that we can better understand how it might impact the markets. So here are some findings so far which can be read up more online
So with all these news we’re likely to see market being volatile as there could be good and bad news releasing from time to time. Countries have also moved to close their boarders with some of the African states but the new strain could already be inside most of the countries.
Most experts have also said that they need about 2-3 more weeks to come up with more data on Omicron.
Meanwhile, some pointers which we shared earlier on with our clients on Friday.
For traders, stick to your short term trading plan. Most likely some of your positions would have cut loss, stick to your plan and don’t go against the market. Trying to bottom pick now is a bit too EARLY as we are still in the early stage of this variant. Follow your proper trade set up and remain calm.
For investors, take this pullback or even correction to scale into great stocks like APPLE, Microsoft , Metaverse related stocks (will cover more on this soon! ) Google, Nvidia. Even Alibaba, Tencent and so many more present good opportunities for the long term. Don’t fear this pullback instead go with fundamentally strong companies with a wide economic moat!
Technical Levels to Watch For This Week
STI
STI broke down after a period of consolidation due to news of the new variant. It it at the first uptrend support BUT we’re not optimistic for it to hold. Travel stocks like SIA, SATS took a bigger hit due to a potential cut in travel. We might see further downside to that horizontal support which is also very close to the second uptrend line (3110) and where some bargain hunting might come in. The next level of support would be 3033 close to the 3000 psychological support. Don’t try to catch the falling knife.
HSI
Looking for more downside for HSI too. Further downside to around 22530. A break above that downtrend line would then signal some confidence to us. So in the meantime we’re more of taking a wait and see approach for HK side.
For more analysis on the US market , you can click HERE!
Friends! It has been a bittersweet year for many and with this new variant we can be feeling discouraged, tired , frustrated and weary. Its perfectly normal to feel that and its good to take time off to reflect, relax and recharge! The road ahead is long and bumpy but look UP and find meaning and purpose. Carry on friends. =)
If you would like to reach out to us, we can be easily contacted HERE
Yours
Humbly
Kelwin&Roy
Micron (MU) saw a nice pop of around 8% on Friday after the chip maker received the selection of “Top Pick” at Evercore ISI! Good job for those who read the blog and took action!
Analyst C.J. Muse of Evercore ISI has high expectations for MU stock. Muse noted that the prices for dynamic random-access memory (DRAM) are likely to bottom out in the first half of 2022. However, since DRAM prices have yet to do so, Muse rationalizes that investors are still hesitant about MU stock. Once the price actually bottoms out, investors will pour money into stocks like Micron in a “fast and furious” manner. For this reason, Muse has set a $100 price target on MU stock, representing a 20% upside from current prices.
So is it too late to get in now? Well, the risk reward to us is not on our side, our upside resistance is around $90 and that’s where we might see some profit taking coming in. For a quick trade we might want to ensure that MU stays above $83 with a tight stop loss of around $82. As we mentioned MU earlier in the Nov, and it has already gone up 20% so for us entering now might not be to our liking! Remember, we like to try to enter the trade when the Risk Reward is on our side and where there is a higher probability of winning!
We hope you learnt something from our post so far!
Trade safe!
Yours
Humbly
Kelwin&Roy
Once again, Electronic stocks, chip makers took center stage as these saw a very nice move up for the whole of last week. And we’re glad to have caught them like MU, AEM, UMS.
Penny stocks are also starting to fire up , so if you’re into penny trading then get ready. BUT do remember to have your proper stops in place as we all know how volatile pennies can be.
Another major event was Alibaba’s results which resulted in a huge sell down while JD enjoyed nice rally after its results. What an exciting week it was. So now lets look ahead!
Recap for STI & HSI
STI was flattish this week with DBS pushing to and of course our Electronic stocks, AEM, UMS, ISDN and Nanofilm pushing higher. The rest of the market was actually sluggish and very range bound.
Over in Hong Kong, JD saw a nice rally after its results and breaking above its resistance. Whereas Alibaba took a beating BUT this might present some good opportunity for those who don’t have Alibaba in their portfolio.
Markets were rough in HK after its initial move up which then saw a bigger drop towards the end of the week.
Key Events to Watch For
The White House said last week that President Joe Biden will likely decide before Thanksgiving whether to keep incumbent Fed Chair Jerome Powell in place for another term or promote current Fed Governor Lael Brainard to the position.
Analysts expect some stock market volatility around the announcement, particularly if Brainard is chosen.
Brainard is seen as more dovish than powell and could consider the timing for further rate hikes.
Monday – Existing Home Sales
Wednesday – Core Durable Goods, Initial Jobless Claims, New Home Sales and crude oil inventories
FOMC meeting minutes
Thursday & Friday are off for the US market due to thanksgiving
Technical Levels to Watch For This Week
STI
STI getting in a sideways consolidation but be alert for any move up or down as this might set the direction for the next coming weeks. A downside could be seen till the 40ema whereas the upside might break above that previous high. We still prefer to see individual stock at this juncture as the STI looks undecided for the moment. It is flirting with the 20ema and only with a stronger close and rebound above it then will we be more convicted of an upmove.
HSI
HSI had a rebound but like STI it could not sustain the rally. A new downtrend resistance can be seen and a new short term uptrend line for the HSI has also been established. HSI could start trading within this range before a more decisive move. If that uptrend breaks we might see more downside to 23,800.
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
Chart source: Poems2.0.com
Taiwan Semiconductor (TSM) is currently in a large sideways movement. We can see that the upper resistance is around $125.6 and the lower support is at $107.9. The middle support band is around $116.50. TSM had a big push last night with a green candle with volume. It is still in consolidation and has not broken out of the band. We need a clean break of the resistance of $125.61 then we might see it move higher to $131 and even $139. Failing to break might see it move lower to the middle support before it tries to attempt to breakout.
Take a look at Disney and see if you spot anything similar?
Downside support at $107. If this breaks TSM might fall to even $95 area. We’re not hoping for this situation.
Keeping a close lookout for the break.
Yours
Humbly
Kelwin&Roy
