Keppel DC REIT Elliott Wave Analysis ( 24-07-22 )

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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.

For more potential trade setup suggestions on the US Stock Markets, check our Blog Posts On US Stocks.

Shorten your learning curve by downloading our complimentary “Elliott Wave Cheat Sheets”.

For more articles on the Elliott Wave Principle, check out our other posts in our Elliott Wave Blog.

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