Korea Circuit (007810 KS) exhibits the ability to make headway through triple resistance barriers on the back of higher degree divergence that has been forming since late 2017.
Overhead resistance barriers, represented by old floor support levels, once cleared, would open up the intermediate up cycle for Korea Circuit. A failure to clear these important levels would induce a fresh test of recent basing lows.
RSI pocket support helps fine tune a pullback level to take a long bet.
Risk to reward is attractive on a dip near support for a 6:1 ratio (reward to risk).
There are some major hurdles on the way up represented by old floor supports.
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Silverlake Axis (SILV SP) triggered a buy above the triangle formation break at 0.43 and the daily MACD barrier outlined in our recent update Silver Lake Bottom Targets . The pick up in buy volumes were noted as an underlying positive as rally energy started to take shape.
Buy volumes have picked up nicely after noted accumulation in late 2018.
The failure to reach for a final low has set in motion the rally toward medium term pivot resistance and more importantly a test on the higher end of the intermediate range.
Near term, this rally is looking extended. We like buying weakness for a press through pocket resistance. Silverlake rallies tend to be explosive.
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Silverlake Axis (SILV SP) triggered a buy above the triangle formation break at 0.43 and the daily MACD barrier outlined in our recent update Silver Lake Bottom Targets . The pick up in buy volumes were noted as an underlying positive as rally energy started to take shape.
Buy volumes have picked up nicely after noted accumulation in late 2018.
The failure to reach for a final low has set in motion the rally toward medium term pivot resistance and more importantly a test on the higher end of the intermediate range.
Near term, this rally is looking extended. We like buying weakness for a press through pocket resistance. Silverlake rallies tend to be explosive.
Amorepacific Corp (090430 KS) break below 248k triple low support induced a hard cycle lower that needs more time to base before mending the technical damage.
Our last update Working Back into Amorepacific Long outlined a buy near 255k support with a stop at 248k. That break of 248k set in motion a bigger down cycle.
Recent rise has been on deteriorating volumes which aligns with current bounce attempts falling into the corrective camp with the major trend still remains down.
In this webcast we outline Ideal downside projections and support that would initiate a fresh basing cycle ahead of a new up cycle. More time is needed.
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Silverlake Axis (SILV SP) triggered a buy above the triangle formation break at 0.43 and the daily MACD barrier outlined in our recent update Silver Lake Bottom Targets . The pick up in buy volumes were noted as an underlying positive as rally energy started to take shape.
Buy volumes have picked up nicely after noted accumulation in late 2018.
The failure to reach for a final low has set in motion the rally toward medium term pivot resistance and more importantly a test on the higher end of the intermediate range.
Near term, this rally is looking extended. We like buying weakness for a press through pocket resistance. Silverlake rallies tend to be explosive.
Amorepacific Corp (090430 KS) break below 248k triple low support induced a hard cycle lower that needs more time to base before mending the technical damage.
Our last update Working Back into Amorepacific Long outlined a buy near 255k support with a stop at 248k. That break of 248k set in motion a bigger down cycle.
Recent rise has been on deteriorating volumes which aligns with current bounce attempts falling into the corrective camp with the major trend still remains down.
In this webcast we outline Ideal downside projections and support that would initiate a fresh basing cycle ahead of a new up cycle. More time is needed.
The S&P 500 remains just short of formidable resistance at its 200-day MA. Yet, there are signs of continued breadth improvement. Technology in particular continues to top our Sector RSR rankings, fueled by strengthening price and RS action for semiconductors, semi-suppliers, and numerous Software groups. Last week we upgraded our weighting for Technology and its strength continues to broaden out. In this week’s report we highlight a number of actionable Technology stocks across our various Groups.
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The S&P 500 remains just short of formidable resistance at its 200-day MA. Yet, there are signs of continued breadth improvement. Technology in particular continues to top our Sector RSR rankings, fueled by strengthening price and RS action for semiconductors, semi-suppliers, and numerous Software groups. Last week we upgraded our weighting for Technology and its strength continues to broaden out. In this week’s report we highlight a number of actionable Technology stocks across our various Groups.
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Broad global indexes (MSCI ACWI, ACWI ex-U.S., and EAFE) are showing signs of bottoming due to positive short-term price inflections topside their respective downtrends. Additionally, cyclical Sectors Technology, Consumer Discretionary, and Manufacturing exhibit early signs of price and RS bottoms throughout Europe, Japan, and EM. In today’s report we highlight attractive and actionable opportunities within these cyclical Sectors, and provide a technical appraisal of major global indexes.
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The S&P 500 has paused just below logical resistance at the downtrend, and we believe the equity market is in wait-and-see mode for incremental information on a variety of issues including trade talks, Fed action and earnings. Meanwhile, We are upgrading equal-weighted Technology to overweight.Our equal-weightedTech Sector has surged to the top of our RSR ranks due to broad-based strength in semiconductors last week. Solar stocks are another Group that is emerging as leadership.In today’s report we highlight attractive small-cap Technology stocks, as well as selection of key stocks (MSFT, AMZN, GOOGL, V, NFLX, and ADBE) and subsectors (semis, biotech, and homebuilders) which are all up against logical price resistance.
Brent’s rise from 52 support has so far fallen in line with a corrective rise that is starting to run out of steam. In this webcast we outline key pivot levels to buy and where we see a rally exhausting ahead of a fresh re test on lower support levels.
Oil remains a good barometer of global growth, which is set to slow into the summer and more so in 2020. Oil will also respond to a improved sentiment on China/US trade. Venezuela’s supply concerns failed to induce any real reaction as major players appear to be building short positions into strength. Tactically, oil is reaching for a minor new high and the failure to rally on potential supply constraints does play into a pending cycle peak.
We run through our tactical sequence as well as our macro view into 2020 (more bearish).
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Brent’s rise from 52 support has so far fallen in line with a corrective rise that is starting to run out of steam. In this webcast we outline key pivot levels to buy and where we see a rally exhausting ahead of a fresh re test on lower support levels.
Oil remains a good barometer of global growth, which is set to slow into the summer and more so in 2020. Oil will also respond to a improved sentiment on China/US trade. Venezuela’s supply concerns failed to induce any real reaction as major players appear to be building short positions into strength. Tactically, oil is reaching for a minor new high and the failure to rally on potential supply constraints does play into a pending cycle peak.
We run through our tactical sequence as well as our macro view into 2020 (more bearish).
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TSMC has struggled after breaking trend support last summer and from pressure stemming from the double top.
Underlying support is starting to take shape as the weekly cycle wrestles with a cycle trough amid a constructive descending wedge forming in the daily cycle. There are still a number of overhead hurdles to clear for a sustainable up cycle to resume. Current support is critical to hold as we hover just above this inflection point. A break below outlined support would take TSMC into a lower trading range.
Galaxy Entertainment Group (27 HK) exhibits some valid chart support in the form of a key low at 61.8% retracement and physical price support at the 40 level. This low should stay in place for 2019.
Price and RSI wedge formations are building steam for an upside breakout. MACD bull divergence and the triangle breakout back in November will provide forward upside energy. MACD triangles are some of the most powerful chart set ups.
Currently at an attractive risk to reward support zone for an entry with a reasonably tight stop.
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Bull wedge outlined in the daily MACD calls for a near term rally with odds favoring a rally stall near the formidable resistance from peak/lows in 2016-2017 that will act as an intermediate cap.
Volumes do show accumulation from late last year and we will be looking for buy volumes to improve on a break above the 298k pivot level.
Long risk to reward is compelling here for an intermediate rise with tactical underpinnings.
Macro resistance hurdle is well defined with the major trend break
Samsung Electronics (005930 KS) and SK Hynix Inc (000660 KS) have cleared key resistance levels that open the way for intermediate gains with a ST peak due in late January that will offer better entry points on weakness in February.
The rally from late December is moving into extended territory. Buy volumes have improved as has upside momentum.
This breakout has also induced a tactical buy signal in the Kospi 200 index above the pivotal 278 resistance but breadth is still mixed to weak. We need to see better upside action in the broader market for a sustainable rise in Korea.
Our overall global outlook remains cautious and continued downward pressure on global equities remains our expectation. One bright spot is EM (more on this below), which continues to give us hope that global equities can bottom out. We provide a technical appraisal of major markets and highlight actionable setups within the global Utilities and Staples Sectors.
Tactical buy supports are compelling for a bigger upside drive given the successful macro backswing support test and ascent that very often opens the way for the macro cycle to make headway, once a corrective cycle terminates. It is this corrective cycle that shows promise for an entry point.
Japan Post Holdings (JPH) does have a short history of volatile swings and will be the challenge within an ongoing basing cycle. We have well defined levels to trade this range tactically while aligning some strong risk pivot supports to reign in risk.
Macro pivot support will define the long term trend for JPH.
The weight of the evidence suggests that the pullback has begun. This belief is supported by overbought conditions combined with the S&P 500, MSCI ACWI, and nearly all Sectors hitting logical resistance. Assuming the pullback continues, the next question is how deep or damaging will it be? In this report we highlight various market/technical indicators we are monitoring, as well as pointing out attractive set ups within Consumer Discretionary and Health Care Sectors.
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