Beyond 2.70 the next key supports are: 2.59 and 2.42.
Stop loss: 3.20
Key Resistance level: 3.163
An announcement was made today that Singapore and Hong Kong will create a travel bubble that exempts people from both cities from quarantine, an agreement that will re-open links between Asia’s two premier financial hubs. Since June 9 travel agreements have been signed to established Green Lanes with China South Korea., Japan , Indonesia and Brunei.
I expect more approval to come. SIA recently introduced cruise to nowhere in flight dining saw huge demands and all these packages will benefit SATS Arrivals at airports rose from 750 in April to 8912, no much to shout about compared to pre-covid numbers but certainly a positive development.
Opening-up is particularly important for Singapore to help reboot its economy and the aviation industries as Singapore relies heavily on international connectivity.
On the chart SATS currently trades above their 50-MA level. Immediate support at 2.95 and 2.85 with overhead resistance at 3.15 and 3.28
Cosco Shipping (SGX: F83) "Every Dog Has Its Day"
Cosco Shipping Spore - "Every Dog Has Its Day" ... this stock has not seen daylight since 2011.
Today, the price action is unusual with significantly improved volume indicating positive energy is back after a long time. Watch for the break above the downtrend line. Upon a breakout, the price could accelerate towards 0.22 its first resistance and 0.25 if a bit of luck. A break below 0.178 will negate all positive price action.
Tesla Battery Day Hype Disappoint.
Tesla unveiled its much anticipated in-house technology amidst high expectation on battery day only to disappoint as management expects to halve battery price and ramped up
US$25,000 passenger
electric vehicle in 3 year's time. The market was expecting game changer
technologies such as silicon nanowire or single cathode material but there was
no surprises.
On the chart Tesla price
could have peaked for now and could be heading for the 50 Days MA at 358 before
heading south again for the 338 level. The first credible support at 296 will
be my first target and if the market condition deteriorates it could head for 273
which is my conviction support level .
Major Wall Indices could correct further.
S&P 500/ Dow Jones/Nasdaq/ Russell
3000/Emerging Market Indices are trading close to its 50-day MA.
Will it break?
Normally, in an average bull market,
investors should be buying when the asset class is supported above the 50-day
MA as they tend to rebound and go higher
from this important technical level.
However, if you have watched my recent
posting on how I called the Nasdaq top before its correction you will
understand that the major Wall Street Indices have yet complete its corrective
phase.
There could be more downside potential in
the event that they break below their respective 50-day MA, they are likely to move
towards their 200-day MA.
Nasdaq 100 Chart
Dow Jones Chart
