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 that the rally from the 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 bottomed at 348.9 on 8th July 2021, and is currently developing with the next move likely to be higher.
Wave (a) ended at 350.7, and pullback in wave (b) ended at 364.4. Wave (c) ended at 348.9 with the recent move up currently in progress. We can expect price to make a short term 3-waves pullback towards 352.3 and 353.4 area.
Near term, while dips stay above 348.9, we continue to expect SG100 to extend higher.
The daily chart suggests that the rally from the 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) is currently in progress, potentially towards 4453.9.
We are expecting some resistance and reaction around 4453.9, where we have a confluence with the upper trend line structure too.
The 4-hour chart suggests near term price may have found a potential resistance at 4370.1 completing a 3-wave move from the 4033.7 low established on 13th May 2021.
Wave (a) ended at 4266.9, and pullback in wave (b) ended at 4136.9. Wave (c) is currently developing and is likely to terminate at around the 4370.1 area. We can then expect price to make a short term 3-wave pullback towards 4266.8 and 4254.5 area.
While we remain overall bullish on the SPX500, we would be cautious on any buy trades for the short term. A better time to enter would be after a completed 3-wave correction lower.
The daily chart suggests that gold may have completed a 3-wave pullback from the recent high at 2075 on 7th August 2020, and found a near term bottom at 1676 on 31st March 2021.
Wave (a) ended at 1764 and pullback in wave (b) ended at 1957. Wave (c) ended at 1676 with a double bottom pattern. Since then the price made a push higher towards 1916 before making a pullback recently.
Two main forecasts moving forward – (1) price to continue higher from here after completing a 61.8% fibonacci retracement at 1768, or (2) price to make a move lower towards the previous support at 1676 before making another move higher.
The 4-hour chart suggests price may be developing as an expanding flat structure with wave (a) ended at 1795, wave (b) ended at 1750, and wave (c) potentially ending around 1805 to 1818 area.
Short term, we are expecting price to make a move lower from here with potential targets at 1784 and 1750.
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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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