ETF Monthly: May 2024 – Bullish month expected for Oil & Singapore Equities. June 2, 2024 135

Summary of Asset Classes Performance in May & Outlook for June:

 

Going into June, we are bullish on Oil and Singapore Equities. Meanwhile, price consolidation is likely for the S&P 500, US Treasury Bonds and Gold. On the other hand, Bitcoin and the Hang Seng Index are expected to experience a slight pullback in their prices.

TABLE LEGEND

 

Red shading = Downtrend, Negative Returns/Outlook

Green shading = Uptrend, Positive Returns/Outlook

Gray shading = Range Consolidation, Neutral Returns/Outlook

 

 

Vanguard S&P 500 ETF (NYSEARCA: VOO) (Weekly Chart) – The price broke above a short-term downtrend resistance line in May to reach a new all-time high.

The price ended its pullback of 5% in April with a breakout above a short-term downtrend resistance line at the start of May. The price also made a new all-time high above the previous high formed in end-March.

 

We expect the price to consolidate sideways in June. Despite reaching a new all-time high, the increase in price was not accompanied by a corresponding increase in bullish momentum. There are bearish divergence signals on the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) technical indicators, and it could be unlikely for the bullish price action to be sustained going forward.

 

 

iShares 7-10 Year Treasury Bond ETF (NASDAQ: IEF) (Weekly Chart) – The price posted a modest rebound in May, with a retest of the previous support turning resistance at US$92.65.

The price recovered from the downtrend channel support to retest the previous support- turned-resistance level at US$92.65 at the start of May. Subsequently, the price did a sideways consolidation.

 

We expect the price to continue its sideways consolidation in June, as it is still holding above the channel resistance.

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Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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