U.S. dollar remains strong against major cross rates. U.S. dollar strength is a long-term theme and it’s here to stay in the coming months. The most vulnerable group is the emerging market currencies. We have seen significant weakness in emerging market currencies over the past year. Long-term charts suggest further weakness for the emerging market […]
Agricultural commodities are testing their decade-long trend line supports and are likely to rebound in the coming months. Prices are expected to rebound from such strong trend supports and in most cases put in a medium/long-term bottom. Especially when more than one trend line overlaps around the same area, it increases the significance of that support. […]
UK election results gave boost to FTSE 100 index and British pound against major currencies. There are several GBP pairs that are preparing for strong directional movements. Out of those I like GBP/ZAR the most for two reasons. These reasons are also the major component of my trade selection process. GBP/ZAR is trying to breakout […]
Dow Jones Composite Index measures changes within the 65 companies that make up three Dow Jones averages: the 30 stocks that form the Dow Jones Industrial Average (DJIA), the 20 stocks that make up the Dow Jones Transportation Average (DJTA) and the 15 stocks of the Dow Jones Utility Average (DJUA). The Dow Jones 65 Composite, […]
Symmetrical triangle is a reliable chart pattern. It usually forms as continuation pattern but after long down/up trend it can also reverse the prolonged trend. Converging trend lines indicate the balance of power between the buyers and sellers. Best way to trade symmetrical triangles is to wait for a decisive breakout from the tight consolidation […]
Uptrend in INDIA equities is running out of steam. Chart pattern suggests correction in the coming months if the index breaks down the 200-day exponential moving average at 27,300 levels. India BSE SENSEX index might be forming a head and shoulder top chart pattern with the neckline overlapping with the long-term average. Breakdown below a […]
Strength in European equities is helping the frontier equity markets in Eastern Europe. Relatively smaller markets such as Romania’s BETI index had strong performance over the past few years and the uptrend is likely to resume. In the beginning of 2014, BETI cleared 6,150 levels. Now the index is trying to breakout from a medium-term […]
There are two themes that I would like to discuss on this chart. 1) Breakout to all-time high levels which I like to call uncharted territory. 2) Significance of long-term chart patterns. I’ve been following and writing about this pair for almost 2 years. I’ve been also betting on U.S. dollar strength against most of […]
Industrial sector outperformance is usually negative for Turkey’s BIST 100 index. Last time I updated this chart was in January 2014. Since the last update It’s been more than a year and BIST 100 index trended higher from 60,000 levels to 91,000 levels. Strong upward trend might be reversing once again towards a corrective period […]
A chart that breaks out to all time high levels has the least resistance. It is called the uncharted territory. Prices are expected to resume their trend after a decisive breakout to all-time high levels. This is what happened with some of the indices over the past few years. I attached below some of the […]
