GLOBAL EQUITY MARKETS – October 3, 2020

REVIEW

The benchmark for the Global equity markets performance, the iShares MSCI All Country World Index ETF (ACWI.O) continues to consolidate above its 200-day average. I analyze the latest correction as a reversion to the mean. As we are still above the 200-day average for the ACWI ETF, It is difficult for me to put my bear market cap on. I’ve discussed the possibility of a short-term H&S top on the ETF, but so far we haven’t seen a follow through which puts the bearish interpretation in question. There is no clear chart pattern development on the daily scale price chart.

Note: We have received many requests for the possibility to have the report in PDF format. Going forward I will attach a PDF version of the report for our members who would like to read on paper and also offline. Due to large size (given that I like to keep charts in large format) this is the best layout I could put the report. I hope this will be useful.

GLOBAL EQUITY MARKETS – OCTOBER 3, 2020 – PART I

GLOBAL EQUITY MARKETS – OCTOBER 3, 2020 – PART II

The benchmark for the Emerging Markets performance, the iShares MSCI Emerging Markets Index ETF (EEM) came very close to its 200-day average and rebounded from a possible minor low that acted as short-term support. 41.7-42.3 area will act as support during any pullback. The uptrend, with price being above 200-day average, is intact.

The benchmark for the Frontier equity markets performance, the iShares MSCI Frontier 100 ETF broke out of a symmetrical triangle chart pattern with the upper boundary that acted as resistance at 24.5 levels. Over the past two weeks the ETF consolidated above its 200-day moving average at 25.3 levels. The iShares MSCI Frontier 100 ETF has a gap between 25.3 and 27 levels. The ETF can target higher levels to fill the gap. For any positive momentum, the ETF should remain above the 200-day average. Recent price action has been impressive given the weakness in many other Global equity benchmarks. From all the major benchmarks (ACWI, EEM and FM) the only orderly price action has been on FM, given the possible ascending triangle chart pattern development above the 200-day average. Completion of the ascending triangle can resume the uptrend.

China SSE 50 Index breached the upper boundary of its possible 5 year-long symmetrical triangle. Breakout from the 5 year-long symmetrical triangle can set the tone for Emerging Markets performance in the coming years. The top of the symmetrical triangle at 3,480 levels acted as resistance. Positive technical outlook is not challenged. The monthly scale price chart is going through an extreme low volatility condition. If last month’s breakout is valid, we will soon see renewed strength and continuation of the uptrend. As is always the case with symmetrical triangles, the minor high acts as immediate resistance following the breakout. I view the resistance at 3,480 levels as the last hurdle in front of China SSE 50 index.

The chart below shows the China SSE Composite Index (larger universe for China equities). Following the strong rally during June-July period the index entered into a sideways consolidation. The Chinese benchmark is now at an important inflection point. If the support at 3,190 levels holds, given the price testing the uptrend line and holding above the 200-day average, we can expect a rebound and strong quarter for Chinese equities. Last 3 month’s price action can form a well-defined rectangle chart pattern.

FXI, the Ishares China Large CAP ETF listed on the NYSE has been trading in a range between 37.85 and 46 levels. Over the past 2 months the ETF has been consolidating in a tight range between the 200-day average and the upper boundary of the rectangle at 46 levels. This week’s price action once again stabilized above the 200-day average. 41.3 and 46 continues to be the boundaries of the consolidation.

Since the beginning of March the Euro Stoxx 50 Index formed higher highs and higher lows, resulting in an uptrend. The index is trading around the 200-day moving average. I have been looking for a well-defined short-term consolidation around the 200-day average for a possible breakout setup. The index failed to break above its minor high at 3,400 levels. Earlier I identified the developing chart pattern as an ascending triangle which possibly is morphing into a rectangle. The last minor low that can act as support stands at 3,065 levels. I will give this chart another chance to form a constructive consolidation. Failure to hold above 3,065 will possibly push the index towards 2,700 levels. European equities have been weak due to sharp breakdowns on Banking stocks.

Both Nasdaq 100 and S&P 500 formed upward trend channels. Nasdaq 100 has been stronger when compared with S&P 500 Index. Nasdaq 100 Index breached the lower boundary of its trend channel. I analyze the current price action as reversion to the mean. The index deviated too far (historical standards) from its 200-day average and now it is pulling back to the average. I’m monitoring the possibility of a short-term H&S continuation with the neckline standing at 11,540 levels.

S&P 500 Index experienced the first setback after its steady uptrend. I’ve adjusted the boundaries of a possible trend channel. S&P 500 is possibly reverting back to its mean, similar to Nasdaq 100 index.

Turkey’s BIST 100 equity benchmark reversed from the strong resistance at 1,230 levels. The long-term trend is upwards. Last 2 year’s consolidation is offering a wide trading range between 840 and 1230 levels. We should watch out for continued weakness as part of a pullback (consolidation of gains). Breakout above 1230 levels will change the outlook to positive.

The Ishares GOLD ETF continues to remain in a steady uptrend. Last week’s price action broke down the support at 18.2 levels and pushed the price towards the possible descending triangle chart pattern price objective at 17.4 levels. Completion of the descending triangle also broke down the trend channel. This week’s rebound can be a pullback to the broken support level at 18.2 levels. Recovery above 18.2 levels can put the bearish interpretation in question.

Copper found resistance at 3 levels. Price is in a steady uptrend. 3.00 levels acted as resistance and after choppy price action around the horizontal resistance Copper resumed its uptrend. Recent sell-off completed the wedge chart pattern and price came close to the beginning of the wedge at 2.8 levels. 2.74-2.77 area will act as support. This is another chart that is possibly completing a reversion to the mean (200-day average).

CBOE Volatility Index (October futures contract featured below) futures contract formed a 4 month-long sideways consolidation range that can be seen as a channel on the October contract. The lower boundary for the October contract is at 29.5 levels. Rebound from the support resulted in weakness for equity markets. Breakdown below the lower boundary of channel can change the outlook to positive.

European Bund price is in a wide consolidation range between 169.3 and 179.7 levels. The trading range is possibly forming a 10 month-long rectangle. The short-term support at 174.5 is broken on the downside and can act as short-term resistance. Price can remain choppy in a wide trading range.

The symmetrical triangle on Japan’s Nikkei 225 Index is possibly morphing into a 4 month-long ascending triangle. The index is looking for direction and renewed momentum to clear the minor high at 23,500 levels. The ascending triangle price objective stands at 25.3 levels.

Below are two Dow Jones benchmarks. The one on the left is Dow Jones Utilities index which is possibly forming a 5 month-long ascending triangle. If the chart pattern in focus is an ascending triangle, the index tested and formed a medium-term low. The next target would be the re-test of the horizontal boundary at 843 levels. The chart on the right supports the view that Global benchmarks might be completing corrections as reversion to the mean. The Dow Jones Industrial Index tested its 200-day average at the same time as the lower boundary of its trend channel. The uptrend for DJI is intact. Breakout on utilities can be positive for U.S. equities.

Both BSE Sensex and Nifty 50 Index cleared their respective 200-day averages in the beginning of July. Since the last week of August both equity benchmarks have been pulling back to the broken long-term averages. I analyze the latest price action as reversion to the mean. The uptrend remains intact. In fact several technical levels formed support at 36.7K for the BSE Sensex and 10.8K for the Nifty 50 Index. Bullish outlook remains intact.

There are 2 new breakout signals.

TECH CHARTS ALERT

CALBEE INC (2229.T)

Calbee, Inc. is a Japan-based company mainly engaged in the manufacture and sale of snack confectionary, bakery food and cereal food. The stock is listed on the Tokyo Stock Exchange. Price chart formed a 5 month-long cup & handle continuation with the horizontal boundary acting as strong resistance at 3,407.0 levels. The horizontal boundary was tested several times over the course of the chart pattern. The daily close above 3,510.0 levels confirmed the breakout from the 5 month-long cup & handle continuation with the possible chart pattern price target of 3,855.0 levels. (Learn more: Video Tutorial)

KEYENCE CORP (6861.T)

KEYENCE CORPORATION is a Japan-based manufacturing company mainly engaged in the development, manufacture and sale of automatic controlling equipment, measuring instrument, information equipment and other electronic application equipment, as well as related systems. The stock is listed on the Tokyo Stock Exchange. Price chart formed a 4 month-long rectangle with the horizontal boundary acting as strong resistance at 46,730.0 levels. The horizontal boundary was tested several times over the course of the chart pattern. The daily close above 47,660.0 levels confirmed the breakout from the 4 month-long rectangle with the possible chart pattern price target of 51,400.0 levels. (Learn more: Video Tutorial)

There are 11 additions to Tech Charts watchlist.

TECH CHARTS WATCHLIST

AMERICAS

TWIN RIVER WORLDWIDE HOLDINGS INC (TRWH.N) – new addition to watchlist

Twin River Worldwide Holdings, Inc. owns and manages seven casinos, two casinos in Rhode Island and one in Mississippi, one in Delaware, and three casinos as well as a horse racetrack. The stock is listed on the New York Stock Exchange. Price chart formed a 4 month-long cup & handle continuation with the horizontal boundary acting as strong resistance at 27.00 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 28.00 levels will confirm the breakout from the 4 month-long cup & handle with the possible chart pattern price target of 34.0 levels. Friday’s price action was a borderline breakout. (Learn more: Video Tutorial)

NCR CORP (NCR) – new addition to watchlist

NCR Corporation is a software and services-led enterprise provider in the financial, retail, hospitality, telecommunications and technology industries, with business in approximately 180 countries. The Company offers a range of solutions, including software, advisory and consulting services, hardware, support and managed services. The stock is listed on the New York Stock Exchange. Price chart formed a 6 month-long ascending triangle with the horizontal boundary acting as strong resistance at 22.50 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 23.15 levels will confirm the breakout from the 6 month-long ascending triangle with the possible chart pattern price target of 29.5 levels. (Learn more: Video Tutorial)

INVESCO LTD (IVZ.N) – new addition to watchlist

Invesco Ltd. (Invesco) is an independent investment management company. The Company provides a range of investment capabilities and outcomes, which are delivered through a set of investment vehicles, to help clients achieve their investment objectives. The stock is listed on the New York Stock Exchange. Price chart formed a 3 month-long rectangle with the horizontal boundary acting as strong resistance at 11.70 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 12.05 levels will confirm the breakout from the 3 month-long rectangle with the possible chart pattern price target of 13.8 levels. Breakout can also clear the 200-day average. (Learn more: Video Tutorial)

LGI HOMES INC (LGIH.OQ) – new addition to watchlist

LGI Homes, Inc. is a homebuilder and land developer. The Company is engaged in the design, construction, marketing and sale of new homes in markets in Texas, Arizona, Florida, Georgia, New Mexico, South Carolina, North Carolina, Colorado, Washington and Tennessee. The stock is listed on the Nasdaq Stock Exchange. Price chart formed a 2 month-long rectangle with the horizontal boundary acting as strong resistance at 123.20 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 127.00 levels will confirm the breakout from the 2 month-long rectangle with the possible chart pattern price target of 143.3 levels. Breakout can push the stock to all-time highs. Friday’s price action was a borderline breakout. (Learn more: Video Tutorial)

LHC GROUP INC (LHCG.OQ) – new addition to watchlist

LHC Group, Inc. is a holding company. The Company provides post-acute healthcare services to patients through its home nursing agencies, hospice agencies, community-based services agencies and long-term acute care hospitals (LTACHs). The stock is listed on the Nasdaq Stock Exchange. Price chart formed a 2 month-long rectangle with the horizontal boundary acting as resistance at 213.70 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 217.00 levels will confirm the breakout from the 2 month-long rectangle with the possible chart pattern price target of 233.0 levels. Breakout can push the stock to all-time highs. (Learn more: Video Tutorial)

VISTRA ENERGY CORP (VST.N)

Vistra Energy Corp is a holding company. The Company operates an integrated retail and generation business in markets throughout the United States. Through its subsidiaries, it is engaged in electricity market activities, including electricity generation, wholesale energy sales and purchases, commodity risk management and retail sales of electricity to end users. The stock is listed on the New York Stock Exchange. Price chart formed a 5 month-long descending triangle with the horizontal boundary acting as strong support at 17.80 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close below 17.25 levels will confirm the breakdown from the 5 month-long descending triangle with the possible chart pattern price target of 14.5 levels. (Learn more: Video Tutorial)

NETFLIX INC (NFLX.O)

Netflix, Inc. is a provider an Internet television network. The Company operates through three segments: Domestic streaming, International streaming and Domestic DVD. The stock is listed on the Nasdaq Stock Exchange. Price chart formed a 2 month-long rectangle with the upper boundary acting as strong resistance at 560 levels and the lower boundary as support at 466 levels. Both boundaries were tested several times over the course of the chart pattern. As the price remains above the 200-day average, I will trade this chart pattern from the long side. The stock held the support at 466 levels and offers trading opportunity between the boundaries. If you are long on this trading opportunity, your stop-loss should be below the lower boundary (466). For trading positions, a level to target is the upper boundary at 560 levels. (Learn more: Video Tutorial)

PINNACLE WEST CAPITAL CORP (PNW.N)

Pinnacle West Capital Corporation is a holding company that operates through its subsidiaries. The Company operates through regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution. The stock is listed on the New York Stock Exchange. Price chart formed a 5 month-long rectangle with the upper boundary acting as resistance at 83.00 levels and the lower boundary as support at 70 levels. Both boundaries were tested several times over the course of the chart pattern. The stock held the support at 70 levels and is offering trading opportunity between the boundaries. (Learn more: Video Tutorial)

POWER CORPORATION OF CANADA (POW.TO)

Power Corporation of Canada is a diversified management and holding company. The Company has interest in the financial services, renewable energy, communications and other business sectors. The stock is listed on the Toronto Stock Exchange. Price chart formed a 4 month-long cup & handle continuation with the horizontal boundary acting as strong resistance at 27.00 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 27.80 levels will confirm the breakout from the 4 month-long cup & handle continuation with the possible chart pattern price target of 30.7 levels. (Learn more: Video Tutorial)

COMPANHIA PARANAENSE DE ENERGIA (CPLE6.SA)

Companhia Paranaense de Energia is engaged in the generation, transmission, distribution and sale of electricity in the Brazilian State of Parana. The Company also provides telecommunications and other services. Its segments are Power generation and transmission (GET), Power distribution and sales (DIS), Telecommunications (TEL), GAS and Holding Company (HOL). The stock is listed on the Sao Paolo Stock Exchange. Price chart formed a 4 month-long rectangle with the horizontal boundary acting as strong resistance at 67.90 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 70.00 levels will confirm the breakout from the 4 month-long rectangle with the possible chart pattern price target of 77.30 levels. The stock has dual listing on NYSE with the ticker ELP. (Learn more: Video Tutorial)

FINNING INTERNATIONAL INC (FTT.TO)

Finning International Inc. is engaged in the selling, servicing and renting of heavy equipment, engines and related products in various markets worldwide. The stock is listed on the Toronto Stock Exchange. Price chart formed a 4 month-long ascending triangle with the horizontal boundary acting as strong resistance at 21.00 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 21.60 levels will confirm the breakout from the 4 month-long ascending triangle with the possible chart pattern price target of 23.7 levels. (Learn more: Video Tutorial)

COLLIERS INTERNATIONAL GROUP INC (CIGI.TO)

Colliers International Group Inc. provides commercial real estate services. The Company offers a range of commercial real estate services in the United States, Canada, Australia, the United Kingdom, Germany, France and several other countries in Asia, Europe and Latin America. The stock is listed on the Toronto Stock Exchange. Price chart formed a 5 month-long ascending triangle with the horizontal boundary acting as strong resistance at 89.00 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 91.50 levels will confirm the breakout from the 5 month-long ascending triangle with the possible chart pattern price target of 116.50 levels. The ascending triangle can act as a bottom reversal chart pattern. (Learn more: Video Tutorial)

SBA COMMUNICATIONS CORP (SBAC.OQ)

SBA Communications Corporation is an independent owner and operator of wireless communications tower structures, rooftops and other structures that support antennas used for wireless communications. The stock is listed on the Nasdaq Stock Exchange. Price chart formed a 5 month-long ascending triangle with the horizontal boundary acting as strong resistance at 320.00 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 326.00 levels will confirm the breakout from the 5 month-long ascending triangle with the possible chart pattern price target of 362.00 levels. (Learn more: Video Tutorial)

INMODE LTD (INMD.O)

Inmode Ltd is an Israel-based company. It designs, develops, manufactures and commercializes energy-based, minimally-invasive surgical aesthetic and medical treatment solutions. The stock is listed on the Nasdaq Stock Exchange. Price chart formed a 4 month-long ascending triangle with the horizontal boundary acting as strong resistance at 36.5 levels. I’ve adjusted the upper boundary of the ascending triangle to better fit the minor tops. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 37.80 levels will confirm the breakout from the 4 month-long ascending triangle with the possible chart pattern price target of 46.0 levels. (Learn more: Video Tutorial)

PUBLIC SERVICE ENTERPRISE GROUP INC (PEG.N)

Public Service Enterprise Group Incorporated (PSEG) is a holding company. The Company is an energy company with operations located primarily in the Northeastern and Mid-Atlantic United States. The stock is listed on the New York Stock Exchange. Price chart formed a 4 month-long ascending triangle with the horizontal boundary acting as strong resistance at 55.00 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 56.60 levels will confirm the breakout from the 4 month-long ascending triangle with the possible chart pattern price target of 65.00 levels.(Learn more: Video Tutorial)

H&E EQUIPMENT SERVICES INC (HEES.OQ)

H&E Equipment Services, Inc. is an integrated equipment services company. The Company is focused on heavy construction and industrial equipment. The stock is listed on the Nasdaq Stock Exchange. Price chart formed a 4 month-long ascending triangle with the horizontal boundary acting as strong resistance at 22.10 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 22.70 levels will confirm the breakout from the 4 month-long ascending triangle with the possible chart pattern price target of 27.4 levels. (Learn more: Video Tutorial)

EUROPE

TELECOM ITALIA SPA (TLITn.MI) – new addition to watchlist

Telecom Italia S.p.A. (Telecom Italia) operates fixed voice and data infrastructure in Italy, and provides mobile network platforms. The Company focuses on various areas of digital services, including Enriched Communication, Trusted Digital Life, Business Life, Indoor Life, Mobile Open Life and Digital Entertainment. The stock is listed on the Milan Stock Exchange. Price chart formed a 5 month-long rectangle with the lower boundary acting as strong support at 0.335 levels and the upper boundary as resistance at 0.4 levels. Both boundaries were tested several times over the course of the chart pattern. The stock, if it holds the support at 0.335 levels (which showed signs of strength on Friday’s trading), will offer trading opportunity between the boundaries. (Learn more: Video Tutorial)

AUTO TRADER GROUP PLC (AUTOA.L) – new addition to watchlist

Auto Trader Group PLC is a United Kingdom-based company that offers a digital automotive marketplace. The Company’s platform offers consumers a selection of new and used car listings, enabling them to search from the marketplace. The stock is listed on the London Stock Exchange. Price chart formed a 4 month-long cup & handle continuation with the horizontal boundary acting as strong resistance at 575.0 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 592.0 levels will confirm the breakout from the 4 month-long cup & handle continuation with the possible chart pattern price target of 642.0 levels. (Learn more: Video Tutorial)

TELEPERFORMANCE SE (TEPRF.PA) – new addition to watchlist

Teleperformance SE, formerly Teleperformance SA is a France-based telemarketing and tele-services provider. The Company specializes in the customer relation management contact centers. The Company uses a range of distance sales media, including fixed line and mobile line telephones. The stock is listed on the Paris Stock Exchange. Price chart formed a 2 month-long rectangle with the horizontal boundary acting as resistance at 267.50 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 271.50 levels will confirm the breakout from the 2 month-long rectangle with the possible chart pattern price target of 285.4 levels. Breakout can push the stock to all-time highs. (Learn more: Video Tutorial)

GRANGES AB (GRANG.ST) – new addition to watchlist

Granges AB is a Sweden-based aluminum company. It specializes in rolled aluminum products for the manufacture of brazed heat products. The Company directs its offer to original equipment manufacturers (OEM), supporting them in product development. Its key competences include: brazing and processing, mechanical properties, corrosion, and lubrication, chemistry and surfaces. The Company has research and development (R&D) and production facilities in Sweden and China. The stock is listed on the Stockholm Stock Exchange. Price chart formed a 4 month-long rectangle with the horizontal boundary acting as strong resistance at 82.75 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 85.20 levels will confirm the breakout from the 4 month-long rectangle with the possible chart pattern price target of 95.8 levels. (Learn more: Video Tutorial)

DASSAULT SYSTEMES SE (DAST.PA) – new addition to watchlist

Dassault Systemes SE is a France-based software company, which provides different kind of three-dimensional (3D) solutions. The Company develops industry-focused solutions for industries, such as aerospace and defense, transportation and mobility, industrial equipment, business services, high-tech, life sciences, energy and materials, consumer goods and retail, construction, cities and territories, consumer packaged goods and retail, and marine and offshore. The stock is listed on the Paris Stock Exchange. Price chart formed a 2 month-long ascending triangle with the horizontal boundary acting as strong resistance at 162.80 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 165.25 levels will confirm the breakout from the 2 month-long ascending triangle with the possible chart pattern price target of 181.0 levels. Breakout can push the stock to all-time highs. (Learn more: Video Tutorial)

ABB LTD (ABBN.S)

Abb Ltd is a holding company. The Company’s segments include Electrification Products, Robotics and Motion, Industrial Automation, Power Grids, and Corporate and Other. It operates through four divisions: Electrification Products, Robotics and Motion, Industrial Automation and Power Grids. The stock is listed on the Swiss Stock Exchange. Price chart formed a 2 month-long rectangle with the horizontal boundary acting as strong resistance at 24.30 levels and the lower boundary as support at 22.7 levels. Both boundaries were tested several times over the course of the chart pattern. A daily close above 24.75 levels will confirm the breakout from the 2 month-long rectangle with the possible chart pattern price target of 26.0 levels. Until that happens, the stock offers trading opportunity between the boundaries. (Learn more: Video Tutorial)

HALMA PLC (HLMA.L)

Halma plc is involved in the manufacture of a range of products that protect and improve the quality of life for people. The Company operates through four segments: Process Safety, Infrastructure Safety, Medical, and Environmental & Analysis. The stock is listed on the London Stock Exchange. Price chart formed a 4 month-long rectangle with the horizontal boundary acting as strong resistance at 2,360.0 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 2,405.0 levels will confirm the breakout from the 4 month-long rectangle with the possible chart pattern price target of 2,590.0 levels. This week’s price action was a borderline breakout. I will monitor this name for another day of strength. (Learn more: Video Tutorial)

LA FRANCAISE DES JEUX SA (FDJ.PA)

La Francaise des Jeux is a France-based semi-public company that operates lottery and online games. The Company is also active in the online poker market with the website Barrierepoker.fr, which is jointly-owned with Groupe Lucien Barriere. The stock is listed on the Paris Stock Exchange. Price chart formed a 4 month-long cup & handle continuation with the horizontal boundary acting as strong resistance at 32.00 levels. The horizontal boundary was tested several times over the course of the chart pattern. The handle part of the chart pattern can be identified as a rectangle that can act as launching pattern. A daily close above 32.60 levels will confirm the breakout from the 4 month-long cup & handle continuation with the possible chart pattern price target of 37.15 levels. (Learn more: Video Tutorial)

ABC ARBITRAGE SA (BITI.PA)

ABC Arbitrage SA is a France-based company that executes arbitrage strategies on the European, American and international financial markets. The stock is listed on the Paris Stock Exchange. Price chart formed a multi year-long rectangle with the horizontal boundary acting as strong resistance at 7.45 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 7.68 levels will confirm the breakout from the multi year-long rectangle with the possible chart pattern price target of 9.15 levels. The larger scale consolidation can also be identified as a possible rectangle with the price objective of 10.8 levels. (Learn more: Video Tutorial)

MIDDLE EAST & AFRICA

MEPET METRO PETROL VE TESISLERI SANAYI TICARET AS (MEPET.IS)

Mepet Metro Petrol ve Tesisleri Sanayi Ticaret AS is a Turkey-based company engaged in the operation of petrol and gas stations and road side restaurants in Turkey. The stock is listed on the Istanbul Stock Exchange. Price chart formed a 3 month-long cup & handle continuation with the horizontal boundary acting as strong resistance at 4.00 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 4.12 levels will confirm the breakout from the 3 month-long cup & handle continuation with the possible chart pattern price target of 5.00 levels. (Learn more: Video Tutorial)

GUBRE FABRIKALARI TAS (GUBRF.IS)

Gubre Fabrikalari TAS (Gubretas) is a Turkey-based company engaged in the production and marketing of chemical fertilizers, including solid fertilizers, liquid fertilizers, powder-based fertilizers and organic fertilizers. The stock is listed on the Istanbul Stock Exchange. Price chart formed a 3 month-long rectangle with the horizontal boundary acting as strong resistance at 32.15 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 33.15 levels will confirm the breakout from the 3 month-long rectangle with the possible chart pattern price target of 38.50 levels. This week’s price action was a borderline breakout. I will monitor this name for another day of strength. (Learn more: Video Tutorial)

GLOBAL MENKUL DEGERLER AS (GLBMD.IS)

Global Menkul Degerler AS is a Turkey-based company, which provides capital market brokerage services to individuals and financial institutions, as well as to local and international investors. The Company operates under the following main divisions: securities brokerage and portfolio management. The stock is listed on the Istanbul Stock Exchange. Price chart formed a 3 month-long rectangle with the horizontal boundary acting as strong resistance at 5.75 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 5.95 levels will confirm the breakout from the 3 month-long rectangle with the possible chart pattern price target of 7.20 levels. (Learn more: Video Tutorial)

STANDARD BANK GROUP LTD (SBKJ.J)

Standard Bank Group Limited is a South Africa-based bank. The Bank offers transactional banking, saving, borrowing, lending, investment, insurance, risk management, wealth management and advisory services. The stock is listed on the Johannesburg Stock Exchange. Price chart formed a 4 month-long rectangle with the horizontal boundary acting as strong resistance at 12,000.00 levels and support at 10,000 levels. If the chart pattern in focus is a rectangle, this week’s low could mark the medium-term low. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 12,300.00 levels will confirm the breakout from the 4 month-long rectangle with the possible chart pattern price target of 13,700.0 levels. (Learn more: Video Tutorial)

ASIA

TENCENT HOLDINGS LTD (0700.HK) – new addition to watchlist

Tencent Holdings Limited is an investment holding company principally involved in the provision of value-added services (VAS) and online advertising services. The stock is listed on the Hong Kong Stock Exchange. Price chart formed a 3 month-long rectangle with the upper boundary acting as resistance at 563.0 levels and the lower boundary as support at 500 levels. Both boundaries were tested several times over the course of the chart pattern. The stock, if it holds the support at 500 levels, will offer trading opportunity between the boundaries. (Learn more: Video Tutorial)

GROWTHPOINT PROPERTIES AUSTRALIA LTD (GOZ.AX)

Growthpoint Properties Australia Ltd is an Australia-based real estate investment trust (REIT). The Company invests in Australian property in the industrial, office and retail sectors. The stock is listed on the Australia Stock Exchange. Price chart formed a 4 month-long rectangle with the horizontal boundary acting as strong resistance at 3.46 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 3.56 levels will confirm the breakout from the 4 month-long rectangle with the possible chart pattern price target of 3.90 levels. (Learn more: Video Tutorial)

OPEN HOUSE CO LTD (3288.T)

Open House Co., Ltd. is a Japan-based company principally engaged in real estate related business. The stock is listed on the Tokyo Stock Exchange. Price chart formed a 3 month-long cup & handle continuation with the horizontal boundary acting as resistance at 3,840.0 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 3,955.0 levels will confirm the breakout from the 3 month-long cup & handle continuation with the possible chart pattern price target of 4,675.0 levels. (Learn more: Video Tutorial)

SCREEN HOLDINGS CO LTD (7735.T)

SCREEN Holdings Co.,Ltd. is a Japan-based company mainly engaged in the manufacture and sale of semiconductor manufacturing equipment. The stock is listed on the Tokyo Stock Exchange. Price chart formed a 4 month-long rectangle with the horizontal boundary acting as strong resistance at 5,550.00 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close above 5,715.00 levels will confirm the breakout from the 4 month-long rectangle with the possible chart pattern price target of 6,345.00 levels. (Learn more: Video Tutorial)

ISHARES CHINA LARGE-CAP ETF (IZZ.AX)

iShares China Large-Cap ETF (the Fund) is an exchange-traded fund. The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE China 25 Index (the Underlying Index). The Fund’s portfolio of sectors include Financials, Telecommunication, Oil & gas, Technology and Consumer goods. The ETF is listed on the Australia Stock Exchange. Price chart formed a multi year-long cup & handle continuation with the horizontal boundary acting as strong resistance at 67.00 levels. The horizontal boundary was tested several times over the course of the chart pattern. The handle part of the chart pattern is possibly a rectangle. A daily close above 69.00 levels will confirm the breakout from the multi year-long cup & handle continuation with the possible chart pattern price target of 91.00 levels. Rectangle chart pattern price target stands at 78 levels. (Learn more: Video Tutorial)

JIANGXI COPPER CO LTD (600362.SS)

Jiangxi Copper Company Limited is a China-based company, principally engaged in the mining, smelting and processing of copper. The Company is also engaged in the extraction and processing of precious metals and dissipated metals, sulfur chemical industry business, and financial and trading businesses. The stock is listed on the Shanghai Stock Exchange. Price chart formed a multi year-long symmetrical triangle with the lower boundary acting as support at 12.6 levels. The lower boundary was tested several times over the course of the chart pattern. A daily close below 12.0 levels will confirm the breakdown from the multi year-long symmetrical triangle with the possible chart pattern price target of 5.4 levels. There is now a possibility of symmetrical triangle acting as a bottom reversal. A daily close above 18 levels will confirm the breakout with the possible chart pattern price target of 34.25 levels. (Learn more: Video Tutorial)

AIR CHINA LTD (0753.HK)

Air China Limited is a China-based company principally engaged in the provision of air passenger transportation, freight transportation, postal transportation and maintenance services in Mainland China, Hong Kong, Macau and foreign regions. The Company is also engaged in domestic and international business aviation businesses, plane business, aircraft maintenance, airlines business agents, ground and air express services related to main businesses, duty free on boards, retail business on boards and aviation accident insurance sales agents business. The stock is listed on the Hong Kong Stock Exchange. Price chart formed a decade-long rectangle with the horizontal boundary acting as strong support at 4.35 levels. The horizontal boundary was tested several times over the course of the chart pattern. Given the Global pandemic and its effects, it is hard to justify a long trade idea in the airline industry. However, the levels Air China is testing can offer a long-term opportunity. (Learn more: Support & Resistance)