In this briefing:
- Japan Post Holdings Basing Cycle with Clear Sell and Buy Levels
- U.S. Equity Strategy: Has “the Pullback” Begun?
- TSMC Make or Break Support After Trend Break Down
- Galaxy Entertainment Bullish Set up for a Breakout
- Ping An No Longer the Safe Haven – Call for New Lows in Progress
1. Japan Post Holdings Basing Cycle with Clear Sell and Buy Levels
Japan Post Holdings (6178 JP) rise is moving into an exhaustive resistance zone and due for a hard give back cycle.
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.
2. U.S. Equity Strategy: Has “the Pullback” Begun?
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.
3. TSMC Make or Break Support After Trend Break Down
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.
TSMC is at make or break support.
4. Galaxy Entertainment Bullish Set up for a Breakout
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.
5. Ping An No Longer the Safe Haven – Call for New Lows in Progress
68.30 long entry was recommended to close at the 77-80 area with 80 acting as the macro bull/bear line in our insight Ping An Long Pair Working – Risk of New Lows . The rejection call at 80 was expected to usher in selling pressure to press on new lows.
Ping An’s safe haven status has evaporated and does exhibit future vulnerabilities in HK’s underlying cycle (late Q1 into Q2). In our last insight we outlined that Ping An shows increasing risk that its safer have position will come under pressure and so it has.
New lows are still targeted. The current bounce is knocking on formidable resistance that should be used to sell stale long positions or even take a short bet.
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