Captures RELX trends driven by subscription growth, analytics demand, and digital transformation
| Strategy Type | Trend Following / Supertrend Indicator |
| Market Outlook | Captures RELX trends driven by subscription growth, analytics demand, and digital transformation |
| Risk Profile | Lower-Moderate Risk (Defensive growth, recurring revenue, low beta) |
| Reward Profile | 2:1 to 2.5:1 Risk-Reward on sustained trends |
| Time Horizon | Medium-term (Weeks to Months) |
| Iv Environment | Works best during trending periods; less effective in choppy consolidation |
| Breakeven | Entry Price ± Spread + Commission |
| Primary Instruments | REL.L (London LSE in GBP), RELX (NYSE ADR in USD) |
| Mas Compliance | MAS regulated brokers required; foreign stock trading permitted |
| Trading Hours | London: 4 PM - 12:30 AM SGT; US ADR: 9:30 PM - 4:00 AM SGT |
| Contract Size | Shares or CFDs; fractional shares available at some brokers |
| Settlement | T+2 for shares; instant for CFDs |
| Tax Treatment | No capital gains tax for individuals in Singapore; dividends subject to withholding (UK 0%) |
| Stamp Duty | UK stamp duty 0.5% on REL.L purchases; none on US ADR (RELX) |
| Cdp Account | Not required for foreign stocks; custody with broker |
| Singapore Relevance | RELX provides scientific, legal, and business analytics globally; relevant to Singapore's knowledge economy and research institutions |
RELX provides information analytics across four segments: Scientific/Technical/Medical (Elsevier publishing), Risk (LexisNexis insurance/fraud), Legal (LexisNexis legal research), and Exhibitions. ~85% is recurring subscription revenue.
Supertrend is a trend-following indicator using ATR (volatility). Green line below price = bullish, hold longs. Red line above price = bearish, stay cash. Flip signals entries and exits.
Enter when Supertrend flips bullish (red to green) and price closes above the line. Confirm with price > 50 EMA and RSI > 50 for higher conviction.
Exit when Supertrend flips bearish (green to red) and price closes below the line. The Supertrend line itself serves as trailing stop throughout the trade.
RELX suits Supertrend because of steady trending behavior, low beta (0.7-0.9), recurring revenue stability, and trends that persist for months. Clean signals result.
Standard: Period 10, Multiplier 3.0. Works well for RELX. Can try (10, 2.5) for tighter stops or (14, 3) for longer trends only. Avoid over-optimization.
Weekly shows major trend. Daily for entry timing. Weekly bullish + daily bullish flip = highest conviction. Weekly bearish + daily bullish = counter-trend (caution).
Risk segment (LexisNexis Risk) has highest growth: insurance analytics, fraud prevention, AI applications. STM provides stability. Legal is steady. Exhibitions recovering.
Digital transformation positive: print to digital increases margins, analytics products command premiums, AI enhances value, SaaS increases stickiness. Major tailwind.
Avoid new positions 5 days before earnings. Hold existing if Supertrend stop not threatened. Post-earnings flip = strong signal. Trade reaction, not event.
HL2 = (High+Low)/2. Upper_Band = HL2 + (Mult × ATR). Lower_Band = HL2 - (Mult × ATR). Direction flips when close crosses opposite band. Green = bullish (use lower), Red = bearish (use upper).
LEAPS (12+ months) on Supertrend flip: defined risk, reduced time decay, ride quality stock's long trend. ATM or slightly ITM for delta. Exit on Supertrend flip.
Calculate RS vs EXPN, WKL. Rising RS = RELX strength, supports signals. Falling RS = investigate cause. Don't hold multiple info services stocks - use RS to select best.
Higher rates compress multiples (negative). But subscription model provides resilience. Quality stock relatively protected. Valuation sensitive but business stable.
Per-trade 2% risk. Max 5% RELX. Max 12% info services. Max 35% defensives. Provides quality growth exposure and portfolio stabilization.
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