Market Analysis for 13Jan2015

Dear SGWiseInvestors Fan and Reader,

Yesterday’s dip is due to further downside in the Crude Oil. 

I will do a forecast of where we are heading in the near future.

Is the upside is intact? If yes, then we should see the bounce at around 16,400. 

INDU – where is it heading?

If it dips below 16,400 then we have to take note of these levels:-

1) 38.2% Fibonacci retracement – 17,244

2) 50% Fibonacci retracement – 16,979

3) 61.8% Fibonacci retracement – 16,709

NASDAQ

We should see the bounce at slightly below 6,750 if the uptrend is to resume further.

If it dips below 4,600 then we have to take note of these levels:-

1) 38.2% Fibonacci retracement – 4,546

2) 50% Fibonacci retracement – 4,466

3) 61.8% Fibonacci retracement – 4,386

WTI - Crude oil

Yesterday Goldman Sach has downgrade the outlook for Crude Oil to projected USD40. This is in line with what Sgwiseinvestors forecasted previously. So where are we heading? The further dip has caused some panic in the stock market yesterday. Today’s report shows that China has better import data and they have increase the import for crude oil. This looks like China is storing up crude oil and we should see the supply for crude oil snapped up fast. We should be reaching bottom soon and that is USD40. Hopefully we can see the bounce soon as it is oversold since 24 Nov 2014.

XAU - Gold

Gold shows a nice uptrend above the 200MA with RSI moving towards 70. We should see this test 82.5 soon. 

USD

USD is going strong and yesterday shows that the dip has reversed. We should hear more good news/data and this will push USD higher. We should bypass this small consolidation that is form on 08-12 Jan 2015

Market Analysis

Dear SGWiseInvestors Reader and Fans, 

Quick roundup of last Friday price action and volume analysis.

The volume is lower than the previous two days and the dip is now resting at 50MA. 10MA and 30MA narrows and there may be further dips as RSI is showing it resting at support 50.86. What can we expect? Our forecast is that it will bounce and heading for RSI 70. Stochastic is showing that there is possibility of the trend continuing upwards. This is possible especially with low volume and we are at the 4th quarter earning with Alcoa being the first company to report earnings after end of today trading hours.

NASDAQ is resting at 50MA and at RSI support 49.81. Volume is low as compared to the previous two days. The wick is showing that there are some buying as well. However, last Friday price action shows that it is dominated by the bear. If today we see white candles then we are going higher and we should be breaking high of 4800 soon.

Crude Oil – WTI

We should see this going lower. Bottom yet? Not yet. It should be reacting only when reach 40 or even below. Lets see.

XAU - Gold

Moving Higher? Yes. We should be seeing it move higher. Once it crossed the 200MA at 75.13, we should see further upside. This is due to Crude oil fear and also issues at Europe side.

USD

Is USD going higher? USD is set for abit of pullback with RSI crawling downwards. We may see the USD fall to support at 91 before the next up leg. Nice uptrend indeed. We should see it hitting 100 psychological barrier in months to come.

Analysis on Company Level

AA – Alcoa 

Earnings forecast for this counter? We should see this moving higher especially with 4th quarter earning reporting today. So what is SGWiseInvestors forecast? We should see good news coming from Alcoa. There is high possibility that the trend will resume upwards and 30MA and 10MA will cross. This is a time to add to position and one good thing is that this trend is above 200MA.

TSLA – Tesla Motors Inc.

We should see this stocks moving down to 200 and testing the low again. The Smart Money is accumulating at price 200. Do accumulate a bit if you are medium -long term investors.

YHOO – Yahoo.Com

Hidden GEM! This stock will be accumulating and ranging side-way for the moment. This has accumulated for 2 months and we should see the breakout soon. With tax plan, earnings (on 27 Jan 2015) and merger acquisition rumor/ plan , we should see this going higher. We should see it going to 60 by this two months.

BABA – Alibaba

Consolidating sideway. Support is at 100. Currently the Smart Money is accumulating this shares. Currently there is a lot of indecision in this stocks. Mid-Long term investors can look to accumulate at 100-102 range. RSI is showing weak momentum. Stochastic is showing that it is moving higher. As such, Sgwiseinvestors will advise to sit on the sideline till further confirmation of upward trend is obtained.

AAPL – Apple 

Should we buy this counter? This stock is not yet a buy. We should see this consolidating sideway. Bears are selling at 112-115 range. Need to breakout above there in order to meet 120 high.

TWTR - Twitter

Bottom Fishing or bounce? This stock looks good. The bottom has been reached and the candle looks good with healthy volume. Looks like it is looking to close the gap at 44-48 range. 10MA and 30 MA is going to cross. This is a BUY.

Qihu – Qihoo 360 

It is now consolidating sideway. This stock is not for swing trading. Rather good for investments.

Buy at 56 and below , sell at 60.

MU – Micron 

What is expected after earnings? We believe this will be going down to 30.89 which is the support at 200MA before the next leg of uptrend will be resume. Testing fails and moreover 30SMA and 10SMA shows that we are going downtrend. This will be short for the moment.

  

INTC – Intel

Holding well. This is going higher. Despite Friday sell off, this is holding well with a DOJI. Buyers are not letting go of the stocks. We should see this moving higher esp with more earnings in place. We should see this hitting 40 in no time.