Keppel DC REIT Elliott Wave Analysis

Here is our blog’s Keppel DC Reit Elliott Wave Analysis for the 24th July 2022.

Fundamental Observation :

• Long term view of the data centre sector still promising as cloud computing & VR are seen as the way of the future.

• Market’s short term view in the reits arena is fairly volatile as increasing interest rates are weighing high on most investor’s agenda.

• Recent news releases show that Keppel DC Reit’s is focused on growing its data centre portfolio.

• Keppel DC REIT’s management is creating value by expanding into overseas market with accretive acquisitions.

• Current asset under management have reached $3.5b and comprised of 21 data centres across nine countries such as Singapore, Malaysia, Australia and China.

Chart Observation :

• Previously, I have assumed that the Primary EW cycle in White for Keppel DC REIT has already completed the 5 wave sequence.

• But the recent price action in the global indices made me changed my mind for many of my EW wave counts for other sectors including Keppel DC REIT.

• Currently, I am more inclined to count the current steep corrective structure as a deep Wave 4 in White consisting of a complex WXY corrective in the lower degree Cyan.

• Recently, Keppel DC REIT’s share price has already approached the lower boundary of the downward sloping channel.

• And is somewhat showing signs of an impending bounce coupled with signs of “Divergence”.

• From a Fibonacci perspective, it has pierced through the Golden Ratio (61.8%).

• And has bounced off almost exactly at the Fibo 68% level, which I personally regard as one of the “Hidden” Algo trigger levels.

• This is one of my favourite liquidity zone setup for a potential reversal scenario.
  
  
  

My Trade Plan :

• As usual, my risk per trade is always limited to a maximum of 1-2% per trade.

• This time round, I am going to use 2% of my account equity for 2 trades each at 1% risk.

• The first trade setup is for a more “Aggressive” entry if price closes above the Lime Green middle channel dotted line.

• This happens to coincide with the upward sloping 1×1 Gann Fan line for higher confluence.

• The second trade setup is for a more “Conservative” entry if price has technically completed the lower degree Wave 1 of the larger last Wave 5 in White.

• From an EW perspective, I am looking for a retracement wave 2 in the lower degree for a more optimal entry.

• I am not expecting the share price of Keppel DC REIT to fall below the 1st Level Support Zone which consists of 2 Red horizontal dotted lines.

• Technically, this happens to be the major support area during the COVID correction period.

• Like any good trade plan, we always must anticipate for the unfortunate “Contingency” scenario.

• And in this case, I am assuming that there might still “Liquidity” at the lower price levels.

• And the BB most likely will do a flush down for one last leg before pumping prices higher as shown in the Yellow Dotted 5 wave sequence.

• The 2nd Level Invalidation level would of course be at the high of Wave 1 in White represented by the thick Red horizontal line.

Kindly note that this is not financial advice, just my humble opinion and trade plan.

Please DYODD ( Do Your Own Due Diligence ) before taking any trades.

Share Your Views

How many of my fellow traders agree with me regarding our Keppel DC REIT Elliott Wave Analysis ?

Do comment and share your thoughts in the comments box.

Trade Safe and Prosper.

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