Market analysis, insights and trading ideas on various markets and products!

Spencer Li

Currency updates – USD/JPY & EUR/SGD

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weekly chart of USD

On this weekly chart of USD/JPY, we can see that the USD has not touched the 20-EMA in quite a while, and has also bounced off the bottom of the channel. Since there is still much bearish pressure, there is a good chance that it will try to test the old lows of 82.85. USD has been weakening against the Yen, which led to the BoJ intervening to prevent a further strengthening of the Yen, by buying USD and selling Yen. An overly strong Yen makes Japanese exporters less competitive in the global market.
weekly chart of EUR/SGD
On this weekly chart of EUR/SGD, we can see a double bottom trend reversal pattern, after the down trendline was violated. However, given the prior strong downtrend, the bull flag might fail and go into a consolidation instead. This might simply be a 2-leeged pullback before resuming the downtrend. .
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Spencer Li

Commodities on the rise – Indofood and Noble | Technical Analysis | Singapore Stocks

Commodities on the riseCurrently, I am long on indofood, and you can see from the chart that it is in a nice uptrend channel with quite some space to its next level of resistance at 2.58. Olam recently exhibited a similar pattern.

indofood

Noble seems to be the laggard in the commodities sector, but it has found decent support, also exhibiting a double bottom test, followed by a pullback. This double bottom pullback pattern is very bullish, plus it has just broken out of the price channel. 
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Spencer Li

Parkway – Bull Flag in uptrend channel | Technical Analysis | Singapore Stocks

Just came back from Prague, and it’s one of my favourite towns. Before I left, I tightened my stops for my shorts on Yanlord, and although it got hit at 1.64, my initial entry of 1.73 still yielded a satisfactory trade. Currently, with the uncertainty on the outcome of the Euro crisis, most markets are trading sideways with a downward bias.

Parkway is still headed up in a neat parallel price channel, and is currently forming what seems to be a double bottom bull flag. A good chance for entry would be on the double bottom pullback, and it would also be a 2nd entry. This means that we should wait for a bullish reversal bar signal before making an entry. Good luck!

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Spencer Li

EUR/SGD – going down, down, down…

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EUR/SGD - going down
The Euro is going down, and is showing extremely weak technicals, which underlie the festering Greece debt fundamental problems. This is the first test of the 20-EMA after staying away for quite a long time, showing the bearish pressure. It also coincides with a breakout below the support of 1.92 and a pullback. On an unrelated note, it seems that my holiday here in Europe is getting cheaper and cheaper. I will be timing my exchange of SGD to EUR near the support levels.

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Spencer Li

S&P 500 – new highs after breaking out of inverted H&S | Technical Analysis | Stock Indices

gspc 031810

gspc 031810

After completing an inverted H&S, the S&P 500 has proceeded to make new highs. Judging by the numerous strong white bars, the upward pressure is quite strong. It might be a good idea to go long on a pullback, perhaps on a test of the breakout to new highs. On a side note, I will be heading to Budapest this weekend.

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