From a technical standpoint, prices have consolidated into a bull flag consolidation pattern since 14 March, breaking out of the flag resistance (orange trend channel) yesterday, albeit with normal volume. This localised breakout coupled with the breakout of the long-term parabolic bowl accumulation pattern at 4,150, a pattern forming since July 2023, signalled a...
Gold surged above $2286 per ounce, marking yet another milestone in its remarkable ascent. This surge has persisted for two consecutive trading days, underscoring the enduring strength of the precious metal.
The driving force behind this meteoric rise is the mounting anticipation of an imminent interest rate cut by the US Federal Reserve in June. Such a move is...
Our View:
The SGX FTSE Taiwan Index Futures contract has been making new all-time highs, powered by the AI frenzy.
A key characteristic of the underlying index is its tech-heavy composition , where technology (61.36%) is by far the largest sector.
This is well above the S&P 500’s technology weightage of 29.83%.
Top holdings in the index include foundry giant...
From a long-term perspective, Oil, in this case, we use the Brent Last Day Financial by NYMEX CME, overall is trending downward!
It would be tempting to initiate a “sell on rise strategy” especially when a long term trend line (in blue) is challenged. The trend line majors the historical highs of Brent (BZ) as well as Crude (CL) since the second all-time-high...
AUDUSD: Potential Short Opportunity at February Peak
The AUDUSD broke out from a rising wedge yesterday and rapidly rose by 1% to hit the 0.658 mark, which is the second peak of the rising wedge pattern. Since then, the pair has retraced and is consolidating below the resistance zone. In the event of another impulsive spike towards the top of the rising wedge...
Oil reversed gain quickly after the multifaceted sword chopped whatever little was left of supply-side momentum, keeping Oil prices afloat. The US labor market’s resilience pushed back hopes of potential “FED Monetary easing” until the second half of the year while the budding US banking crisis shook the ground beneath Oil prices.
Technically, Brent tried to...
AUDUSD is on track to completing a large head and shoulders pattern that has formed since November 2023. On the 4 hourly chart, the pair broke down from the pattern on 1st Feb but rebounded sharply to close the day in the green. Despite the rebound, the overall bearish reversal pattern remains intact with a high probability for the AUDUSD retracing from current...
GBPUSD has been consolidating in a descending triangle formation since late December after an uptrend throughout November and December 2023. The pair is currently struggling around the upper resistance zone of the descending triangle. We anticipate a retracement to the support zone of the triangle pattern around 1.2613.
🔴 Sell Entry: 1.2747
🎯 Target: 1.2613
⛔️...
After breaking down from a bear flag formation on 16 January, EURUSD consolidated in another similar pattern in the past week. The pair has been on a downtrend since last December and the back-to-back occurrence of the bearish continuation pattern (bear flag) reinforces the bearish outlook for the next two weeks.
At the time of writing, the pair is hovering...
Our View:
The S&P 500 E-mini Futures hit a new all-time high last Friday, powered by tech shares and AI optimism, as the contract breached the key 4,800 level to confirm a bull market rally from its October 2022 low.
Nevertheless, given recent pushback from Fed officials and a resilient labour market, we think investors may have gotten ahead of themselves in...
FCPO has been in consolidation mode for quite some time and has formed a descending triangle. Following 7 straight days of green daily candles, it is becoming clearer that upside breakout of the declining resistance trend line is possible as bulls push forth steadily.
How do we then capitalise on it?
Consider the plan below :
Entry : Buy 2x number of lots at...
After depreciating steeply between 28 Dec 2023 and 3 January 2024, the EURUSD rebounded and has been consolidating in a rising channel. On the 4-hour chart, we observe a bear flag formation that is identified by a steep downward price movement followed by a rising channel.
Should prices rise to 1.1008 zone (R1), it would serve as an attractive entry for a short...
Our View
We have a favourable view of Emerging Market (EM) equities, but we prefer to wait out any short-term corrections and enter only after prices have bounced off support.
The MSCI EM Futures contract could see a bumpy start to 2024, but we expect to see further upside through 2024, supported by a depreciation in the USD once the Fed cuts interest rates...
AUDUSD is poised to complete a head and shoulders pattern that formed since 19 December 2023 in the event prices break below the neckline support around 0.6690 (S1). Our downside technical target is set at 0.6545 (S3) upon the pattern breakdown.
A breach below S1 would also confirm a breakdown from a broader rising channel pattern that took place since October....
USDJPY started the year by breaking out of a bearish trendline that lasted through November and December. We foresee a retracement from current levels after the pair failed to advance above previous resistance zones around 144.02 (R1) and 144.68 (R2).
RSI on the hourly timeframe shows bearish divergence, suggesting the recent rally is losing steam and a...
Our View
We hold a favorable view of the Mini HSI Index Futures contract in the short-term on likely policy stimulus; but we prefer to wait out any short-term corrections before positioning for a near-term tactical rally.
Due to medium-term structural concerns and still-weak confidence among businesses and consumers, it will be a while before the market trades...
On the daily timeframe, EURUSD was rejected off a strong dynamic resistance zone around 1.11.
On the 4-hourly timeframe, EURUSD can be seen falling back into a rising channel after a fake-out that did not sustain.
RSI slipped into bearish territory and bearish divergence hints at retracement to test support around 1.085.
USDCNH continues on its downtrend after being rejected off previous dynamic support level around 7.16 zone that now serves as resistance.
Potential short term rebound to 7.125 (R1) that would be a good entry for short position with a downside target level around 7.062 (S1).
