- FTSE 100 teased traders with a break above 7,400 but it was not to be, seeing the index close at 7373.20 by Friday’s close. This means it remains within the 7000 – 7450 range it has calved out since August. Ultimately, we’d need Santa’s rally to kick into gear this week if there’s hope of a breakout at all.
- Construction and building materials sector remains the strongest YTD, and currently trades at its highest level since May 2018. Electronic and Electrical Equipment, General Retailers and General Financials are close behind and trade just off their highs.
- The Oil & Gas Index is on track for the weakest sector this year, currently down -9.4% YTD.
The following stocks, if not from the list above, have been selected due to displaying price action characteristics of interest.
Aveva Group plc CFD/DFT: This stock continues to show up on our watchlist as it continues to push to new highs. Friday’s bullish engulfing candle suggests a swing low could be in after forming a small flag pattern. However, unlike some equities on Friday, its bullish close was not so extreme that it looks immediately over extended and therefore due some mean reversion. Traders can either seek a break above 4600 or wait to see if a base builds above the 4310 – 4354 region.
Spirent Communications PLC CFD/DFT: Closing the week at its highest level since 2001 on Friday, we see further upside potential. With three failed attempts to break below 206.50, there’s clearly demand around that level so we remain bullish whilst prices trade above it. We can see that patience would be required here as price action tends to alternative between bullish and bearish frequently, yet the trend is clearly pointing higher.
Oxford Instruments CFD/DFT: Since hitting a 5.5 year high, we’ve seen a retracement test (yet close above) the 38.2% Fibonacci level with a bullish pinbar. Moreover, the 50-day eMA is acting as support and it’s in the vicinity of the June highs. We therefor suspect the corrective low is in. Bulls could wait for a break of a corrective line or Friday’s high to assume bullish resumption and for a retest of the 1672 high. A close below 1424 places it onto the backburner.
Royal Dutch Shell A CFD/DFT: Prices are on the cup of breaking to new lows. However, as we saw a heavy volume day respect support, it leaves room for a bounce prior to its next breakdown. Bias remains bearish below the 2182.50 high. Whilst a break above this key level doesn’t mean it won’t break to new lows later, it does place it onto the backburner. Whereas a direct break below 2124 assumes bearish continuation.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.