INTERIM UPDATE – April 28, 2020
After rebounding from the lows many indices continued to remain strong. While some individual equities re-tested and even moved to new lows, many formed higher lows and over the past month possible bullish short-term continuation chart patterns. There are several stocks with the same setups. One important thing to mention, those are short-term chart patterns and are more prone to failure than long-term chart pattern developments. Also many stocks that are forming those short-term consolidations are trading below their 200-day averages. So if we see continuations, at best I will treat them as swing trading opportunities and not for position trading. Below are some of those good looking setups.
KONAMI HOLDINGS was featured in the previous Global Equity Markets report. It formed a short-term bullish continuation chart pattern. Past few days price action confirmed the breakout. Similar chart patterns can be seen on following stocks in this Interim Update.
KONAMI HOLDINGS CORP (9766.T)
KONAMI HOLDINGS CORPORATION, formerly KONAMI CORPORATION, is a Japan-based company mainly engaged in the entertainment business. The stock is listed on the Tokyo Stock Exchange. Price chart formed a 1 month-long flag with the upper boundary acting as resistance at 3,338.0 levels. The daily close above 3,440.0 levels confirmed the breakout from the 1 month-long flag with the possible chart pattern price target of 4,175.0 levels. It is important to note that the shorter the time frame on the chart pattern the more prone it is to morphing and becoming part of a larger scale chart pattern. A long-term chart pattern is mature and ready to produce the strong trend periods. (Learn more: Flag as a measuring pattern)
MITSUI E&S HOLDINGS CO LTD (7003.T)
Mitsui E&S Holdings Co., Ltd, formerly Mitsui Engineering & Shipbuilding Co., Ltd. is principally engaged in shipbuilding business. The stock is listed on the Tokyo Stock Exchange. Price chart formed a 1 month-long ascending triangle with the horizontal boundary acting as resistance at 586.00 levels. A daily close above 603.0 levels will confirm the breakout from the 1 month-long ascending triangle with the possible chart pattern price target of 695.0 levels. (Learn more: Video Tutorial)
XINYI GLASS HOLDINGS LTD (0868.HK)
Xinyi Glass Holdings Limited is a Hong Kong-based investment holding company principally engaged in manufacture and sales of glass. The stock is listed on the Hong Kong Stock Exchange. Price chart formed a 1 month-long pennant with the upper boundary acting as resistance at 9.10 levels. The upper boundary was tested several times over the course of the chart pattern. A daily close above 9.2 levels will confirm the breakout from the 1 month-long pennant with the possible chart pattern price target of 10.35 levels.
VONTOBEL HOLDING AG (VONN.S)
Vontobel Holding AG is a Switzerland-based private bank and holding company of the Vontobel Group. It is structured into three main business units: Private Banking, Investment Banking, and Asset Management. The stock is listed on the Swiss Stock Exchange. Price chart formed a 1 month-long pennant with the upper boundary acting as resistance at 49.50 levels. A daily close above 51.0 levels will confirm the breakout from the 1 month-long pennant with the possible chart pattern price target of 61.75 levels.
COWEN INC (COWN.O)
Cowen Inc., formerly Cowen Group, Inc., is a financial services company. The Company provides alternative investment management, investment banking, research, sales and trading, and prime brokerage services. The stock is listed on the Nasdaq Stock Exchange. Price chart formed a 1 month-long flag with the horizontal boundary acting as strong resistance at 10.45 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 10.75 levels will confirm the breakout from the 1 month-long flag with the possible chart pattern price target of 14.50 levels.
