We’re into the middle of Nov and we saw some pullback in the overall market BUT a certain sector stood out in our market! Electronic stocks which we mentioned in our previous THE WEEK AHEAD post to look out for saw a nice push ahead after AEM’s results sending it to its all time high. Frencken also a boost after its results.

Recap for STI & HSI

Banks pushed higher last week only with OCBC lagging behind. Once again it wasn’t a broad base rally and being selective on certain sectors is key. Electronic stock was a sector that we were watching and since then it has started moving. We might see the laggards for this sector to start moving as some spillover effect takes place. SPH was gapping up due to bidding wars which saw its price moved up about 10% for the week. Energy sector is currently taking a breather.

Over in Hong Kong, things are heating up as support was tested and held and we saw a general rebound in HK stocks bringing some much needed rally in the sluggish market. Tech stock saw a good rebound and Xiaomi is a stock that is on our watchlist.

Key Events to Watch For

1. Core Retail Sales on Tuesday
2. Building Permits in the US to see how the housing market is doing , Crude oil inventories to see how demand for oil and economy activity is. Take note for oil related stocks. All these are happening on Wednesday.
3. We have jobless claims on Thursday to see how employment is.

Technical Levels to Watch For This Week

STI

STI broke below thee uptrend line that has been supporting it and has pushed down to the 20ema also coinciding with our horizontal support level. We haven’t been that bullish in the STI for the past weeks as most of the underlying components were not really moving. Some bounce came as the 20ema held it up but we’re not very bullish yet and might want to wait for clearer signs. Continue being selective as we can see that Electronic sector is reaping rewards. The bearish candle on friday might signal more downside and with a better base formed then will we have more conviction on the STI.

HSI

And there you have it, HSI being the beast of the east saw a very nice rebound off our support line. It came off with a hammer last Wednesday and crossing above our downtrend line and reaching our next level of resistance of around 25520 which is the uptrend resistance line. HSI does look like its gathering strength to break that resistance and charge towards the next resistance of 26240 area. Looking out for beaten down HK stocks!

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

The post The Week Ahead (7) - [STI, HSI, NASDAQ & S&P] appeared first on Singaporehumblestock.