Week 35 Market Roundup — S&P 500 All Time High Mark up Phase

As mentioned in Week 34 market roundup on last Sunday, S&P 500 futures (ES)went through vertical absorption on 20–21 Aug 2020, which is similar to 30–31 Jul 2020 with the anticipation to push through beyond 3400 hitting all time high. Last week, we have witnessed S&P 500 rallied 111 points (or 3%) and close above 3500.

As S&P 500 entering into an uncharted territory, there are no prior levels acted as resistance. In this case, a channel was drawn up and based on the price movement of the past, it is anticipated that S&P 500 to hit the overbought channel around 3550 before a reaction unfolds, as shown in the chart below. The supply level for the past week was average and does not pose any threat yet.

Check out last week market analysis video series below if you haven’t or would like to reflect on how last week unfold together with your preparation and analysis:

Stock Watchlist — Malaysia

MASTER (MASTER-PACK GROUP BERHAD)— a reaction with gap down action happened on last Monday. despite the threatening movement with spike of supply, it is still supported at the level 1.8. A rally is expected to test the upper range near 2.05.

VS (V.S INDUSTRY BHD) — instead of having a meaningful pullback, an up-sloping range was created with decreasing supply. Further rally can be anticipated given the strength of this stock. The next targets are 2, 2.13.

JHM (JHM CONSOLIDATION BHD) — a shallow reaction in conjunction with the earning announcement on 26 Aug 2020 as a test of the previous sharp reaction initiated on 6 Aug 2020 is completed. A break above 1.76 should see JHM to test 2 as the first target.

REVENUE (REVENUE GROUP BERHAD) — Supply absorption was seen in last week with a horizontal reaction. A rally is anticipated to break above 1.41.

COMFORT (COMFORT GLOVES BERHAD)— As expected in Week 34, a reaction happened last week. Watch out for more distribution near the supply zone 4.6–5.1.