By Ang Kar Yong, Professional Trader
In this Market Trends article, professional trader, Ang Kar Yong, walks us through opportunities that he is looking at on the Singapore index (SG100), US index (SPX500 and Gold (XAUUSD). Read on to learn what they are.
The daily chart suggests the rally from 2nd November 2020 low is unfolding as a diagonal structure.
Wave (i) ended at 344.8 and pullback in wave (ii) ended at 324.9. The index then resumed higher in wave (iii) towards 366.6 and pullback in wave (iv) has ended at 341.6. Wave (v) is currently in progress, potentially towards 373.1.
We are expecting some resistance and reaction around 373.1, especially since we are already seeing a divergence formed between the current rally and the RSI indicator.
The 4-hour chart suggests near term price may have established a recent top at 370.8 on 11th August 2021, and is currently retracing lower.
Wave (a) ended at 362.9, and pullback in wave (b) ended at 355.1. Wave (c) ended at 370.8 with the recent move down currently in progress. We can expect price to make a short term 3-waves pullback towards 359.9 area.
Near term, while price stays below 370.8, we continue to expect SG100 to extend lower.
The daily chart suggests the rally from 30th October 2020 low is unfolding as a diagonal structure.
Wave (i) ended at 3871.2 and pullback in wave (ii) ended at 3719.4. The index then resumed higher in wave (iii) towards 4244.8 and pullback in wave (iv) has ended at 4030.7. Wave (v) may have completed recently at 4453.9 area.
We are expecting some resistance and reaction around 4453.9, where we might see price pullback and head lower from here.
The 4-hour chart suggests near term price may be developing as a diagonal structure from the 4233.6 low established on 19th July 2021.
We can then expect the price to continue pushing higher in the short-term towards the 4477 area.
While we remain overall bullish on the SPX500 as long as the price remains above 4233.6, we would be cautious on any buy trades for the short term. A better time to enter would be to wait for a completed 3-wave correction lower first.
The daily chart suggests price may have found a bottom at 1683 on 9th August 2021, and potentially a double bottom structure with the previous low on 30th March 2021.
We saw price made a decent bounce off the 1683 low, and we are expecting price to continue higher towards the next key resistance at the 1916 area.
As long as price remains above 1683, any dip will provide us a decent buying opportunity.
The 4-hour chart suggests price may be developing as a corrective pattern at the moment, after the recent bounce off key support area at 1683. As long as the price remains above this low, we continue to expect it to make a move higher.
Short term, we are expecting prices to make a move back towards the 1720 area before the push higher towards 1833. This would present a decent opportunity to look for a buy setup.
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Ang Kar Yong started trading at the age of 21 with a small capital of US$500. After just 2 years of Forex trading, he was able to increase his capital by 2,600%. Since then, Kar Yong has been featured on Channel News Asia’s Money Mind, awarded the Most Popular FX Trainer in Malaysia and the Top Forex Analyst in Asia by WikiFX in 2019. Having coached hundreds of traders across Southeast Asia, Kar Yong believes that anyone with the desire and the right mentality can succeed in trading.
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