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

Follow and like us:

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

Follow and like us:

These Payment Service Providers Are On Our Watchlist, Are They On Yours?

Kelwin & Roy Visa , , ,
7th December, 2021, 6:01 PM

These Payment Service Providers Are On Our Watchlist, Are They On Yours?

With the recent pullback, these payment services took a bigger hit due to fear of reduced spending as countries goes into lockdown again. But as we find out more about  Omicron, things might not be as bad as what the media has been saying. So lets dive straight into these four stocks.

Paypal (PYPL)

Paypal 7th Dec 2021

Paypal (PYPL) is consolidating at around the $180 level and if it manages to break the $189 level we might see a potential year end rebound to $200 then $215. It got whacked down recently due to its results but we think that this is overdone and value is emerging now. The downside might be around $175 if $180 breaks.

MasterCard (MA)

Mastercard 7th Dec 2021

Currently rebounding from its low and off the support of around $313. $339 area is one area of resistance but we’re looking for it to break that resistance to bounce back to around $360 level. This is time to scale in as we are bullish on Mastercard. Support at $313 then $300.

Visa (V)

Visa 7th Dec 2021

Rival to Mastercard, these payment services are almost an oligopoly. Visa recently broke that downtrend line and might be looking to test the $208 resistance and eventually to $216. We have covered Visa just last month and it has retraced to our $192 level which was a good area to scale in! Support at $190-192.

Square (SQ)

Square hasn’t built a base but has a nice candle closing last night, we might see a base starting to build at around $170 which is an area to scale in too. The selling has been overdone and its time to scoop us some good shares!

Yours

Humbly

Kelwin&Roy

Follow and like us:

The Week Ahead (10) – [Omicron Dominating Headlines! ]

Kelwin & Roy STI , , , ,
5th December, 2021, 10:25 PM

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 :

  1. Early Clinical observations globally suggest Omicron Covid-19 variant may have higher reinfection risk.
  2. Omicron possibly more infectious because it shares genetic code with common cold coronavirus! We’re not doctors but with it being more infectious it might also be less deadly! hopefully this is true and this might not be so worrying!

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!

Image source: Money.cnn.com

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

Follow and like us:

The Week Ahead (9) – [Special Edition, Omicron! ]

Kelwin & Roy Omicron , , , , ,
28th November, 2021, 10:10 PM

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

  1. High number of cases increase risk of mutations. The more a virus spreads, the more chance it has to mutate. Thousands of small changes have been seen in coronavirus so far – most with little impact.
  2. Some mutation lead to new variants. A virus changes in a way that helps it to survive. Scientists are particularly concerned about changes to the spike protein – the part that helps it enter the human cells. The real concern is that this virus is now radically different to the original that emerged at first.
  3. How transmissible is Omicron and how deadly is it. Will the current vaccine still be effective against this new strain?
  4. So far according to the first South African doctor to alert the authorities with the omicron variant has symptoms that are unusual BUT MILD.
  5. Pfizer said an updated version of its COVID-19 vaccine will be ‘ready in 100 DAYS’ if new Omicron variant is resistant to its current vaccine.

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

Follow and like us:

Micron Technology (MU) – [ Up Another 10%, Is It Too Late Now? ]

Kelwin & Roy Micron Technology , ,
22nd November, 2021, 7:44 PM

Micron Technology (MU) – [ Up Another 10%, Is It Too Late Now? ] MU 22nd Nov 2021

Chart Source: Poemsview 22nd Nov 2021

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

Follow and like us:

The Week Ahead (8) – [STI, HSI, NASDAQ & S&P]

Kelwin & Roy Straits times index , , , ,
21st November, 2021, 11:55 PM

The Week Ahead (8) – [STI, HSI, NASDAQ & S&P]

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

Chart Source: Poemsview 21st nov2021

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

 

 

 

Follow and like us:

Taiwan Semiconductor (TSM) – [ Keeping A Lookout, Technical Outlook]

Kelwin & Roy TSM , ,
19th November, 2021, 6:57 PM

Taiwan Semiconductor (TSM) – [ Keeping A Lookout, Technical Outlook]TSM 19th Nov2021

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

Follow and like us:

Visa (V) – [ Nearing The Bottom? Time To Get In?

Kelwin & Roy Visa ,
18th November, 2021, 7:57 PM

Visa (V) – [ Nearing The Bottom? Time To Get In?

Visa don’t really need much introduction as most of us would probably own a credit card/debit card under the payment service of Visa or Mastercard. It is considered an Oligopoly as these two are the biggest in the payment technology space. Visa being the biggest. If you actually remember this picture and commercial then you’re probably from my era. Haha!

As the world adopts towards the Global electronic payments, the demand for Visa and Mastercard will continue to cement their growth and riding through this trend. The global digital payment market is estimated to be worth US$5 trillion. Remember that Visa is a not credit card company.

Visa has a Wide economic moat as the other competitor is Mastercard while American Express is far back and not really considered a big threat.

Lets take a look at the chart to see where Visa is now and is an entry on the cards?

Visa 18th Nov 2021

Chart source: Poems2.0 18th Nov 2021

We saw Visa having a big gap down due to news that Amazon UK customers will no longer be able to pay with credit cards issued by Visa beginning next year! What a bummer! To rub salt to the wound , Buffet has reduced his stake in Visa and Mastercard too ! But is this all doom and gloom for Visa? Or does this spell an opportunity to pick up some Visa at a lower price?

From the charts, the round  number $200 acts as a psychological support, further support at around $196 then $192 gives investors a good chance to scale into Visa. An entry of round $200-205 might be an area to consider for an investor first tranche into Visa.

There is potential for Visa as world economy continues to recover and people adapting digital payment.  Remember to clearly define your investment horizon as this is important in your investment journey.

Looking for a good entry for Visa ,are you?

Yours

Humbly

Kelwin&roy

Follow and like us:

Nanofilm – [ Alerting Before The Run]

Kelwin & Roy Nanofilm , ,
17th November, 2021, 7:43 PM

Nanofilm – [ Alerting Before The Run]

Would you like to be alerted before a stock run rather than chasing it? Well, this is what our Clients have been receiving. Direct message sent to their handphone via whatsapp. For this round, it was Nanofilm, it was back in August that we sent it out after the big fall due to some internal tussle. And the most recent was just less than a month ago in Oct.

Nanofilm 17th Nov 2021

Chart source: AdvisorXs 17th Nov2021

Nanofilm has seen risen over 8% since it broke that $3.80 resistance to a high of $4.13 today. Volume is also the highest for the month which indicates more interest by traders and investors. This might help push prices up to our next target of $4.21 and eventually $4.40 area. Nanofilm has consolidated for awhile and with all that stored up energy we’re hoping for a higher push 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?

Then JOIN our growing community and see how you can receive such trade alert sent to your phone.

Yours

Humbly

Kelwin&Roy

 

Follow and like us: