Last week in my Week 26 Market Round up, I stated the grinding down move is a bullish character with possible shortening of the downward thrust as a bullish scenario. This bullish scenario did play out as per what I mentioned.
The reversal up swing from last week accompanied by consistent demand signature, as shown below. S&P 500 is likely to see a breakout of this immediate resistance at 3156 to test the buying climax high at 3230 formed on 8 Jun 2020. The big trading range between 2925–3230 is still well in play.
It is worth to note that so far NASDAQ has been the leader, followed by S&P 500, RUSSELL 2000 while DOW is the weakest among these 4 major indices. I pay close attention to the NASDAQ in case it become the one to lead the way down. Also, RUSSELL (small cap) is showing decent strength and we can expect rotation into small cap in focus too.
Based on the relative performance from Finviz, Technology and consumer cyclical are still leading the rest.
By zooming in Consumer cyclical, it is interesting to notice some of the hard hitting industries due to COVID-19 had a strong recover from extreme oversold condition while internet retail is still showing leadership.
Check out last week market analysis video series below if you haven’t or would like to reflect how last week unfold together with your preparation and analysis:
Stock Watchlist — Malaysia
Quality demand is required to propel up AIRASIA, MASTER, KNM, ARMADA, FGV and ANNJOO, which are all in re-accumulation bullish bias.
Stock A as mentioned in Week 26 Market Round up, is NAIM, rallied up 26% to test 0.99, touching the overbought channel followed by a mild profit taking reaction. It is likely to break above 1 to test higher targets.
Stock AA, a Malaysia stock (Electronic Manufacturing Service provider) with a nice re-accumulation structure, currently under backup action range pending to scale higher. Commitment above 1.05 is needed to kick start the rally.
Stock Watchlist — US
MSFT (MICROSOFT) broke all time high and closed at 206.26 in the markup phase E.
BYND (BEYOND MEAT) — tested the support level at 127 and bounced up to 140.7. A trading range between 127–163.
FB (FACEBOOK) — Instead of having a sign of weakness (SOW), FB had a shakeout with quick recovery above 230, which is still bullish. The commitment last week violated the distribution scenario.
IBB — A reversal from the backup action happened last week. It is likely to break above 140 to test the uncharted zone. This ETF containing 5-years cause built with huge upside potential.
Stock X, as mentioned in Week 26 Market Roundup, is SEA Limited. This is the company behind SHOPEE platform, a popular online shopping platform in South East Asia. It broke all time high after a reversal from the reaction.
Stock Y, a popular e-commerce platform in China, listed in NASDAQ, is about to break all time high out from the small re-accumulation structure.
Study their charts and you should find them interesting in terms of price structure and volume signature.