Markets especially in the West saw more of a rebound while Asia markets tried their best to remain positive for the week. S&P 500 managed to close above the 20ema which hasn’t happen for the last few months. In the fed minutes meeting this week , they continue to take an aggressive stance towards inflation but market has seem to be used to the idea of a rising interest rate and didn’t react much. Things are looking up for the week so do read on to find out more.
STI saw weakness at the start of the week but managed to fight its way back to close flat for the week. Banks are shaping up in the market as DBS manages to stay above its 5ema. A positive for a short term rebound. STI is currently above the downtrend line which is a good sign so we might see it break above the 20ema to move up to 3297 for the coming weeks. Looking out for rebound opportunities for our local markets.
HSI also managed to break the downtrend which we drew and mentioned last week signaling a promising rebound. It is also above the 20ema and might challenge the 21262 level and maybe even higher for the week. Shanghai is edging towards opening up while Beijing is easing up which are positive signs for the Chinese markets. Looking for more upside for the week and even for oil related stocks for some rebound.
Keep a look out for the potential rebound and as usual, don’t overleverage on your position as no one knows if this is the true bottom for the markets or even how high this rebound might go to. For traders, it is utmost importance to be fast to react and with June approaching, markets will be looking to inflation data once again for more directions.
Head over to our facebook for more updates on S&P500 and Nasdaq for the potential levels we are looking at.
Kelwin & Roy