Industrial metals remain to be an emerging market story. 3 year and 5 year weekly rolling correlations show high correlation between the MSCI Emerging market index and most of the industrial commodities. As expected there is also high correlation between the industrial metals. Zinc, Copper and Lead are high correlated industrial metals. 3 YEAR WEEKLY […]
U.S. treasury and government bond prices are completing bullish chart patterns that could resolve on the upside in the following weeks. U.S. 30-year T Bond is completing an inverse head and shoulder base and the U.S. 10 year T Note is forming a falling wedge pattern. Both chart patterns are considered to be bullish and suggest […]
For those who are not a big fan of twitter I’m posting my latest updates on global equity markets. I believe these are important charts and are worth reviewing again. Global equity markets are experiencing a correction. Long-term trends are still intact. Long-term 200-day averages will play a significant role in determining the next direction of […]
Global equity markets can experience a pull back. MSCI World Markets index is testing strong long-term resistance levels. A pull back towards the long-term averages would result in a reversal on the MACD too. It is still early to call for a reversal but it is also extremely important to keep an eye on this long-term […]
Frontier markets performed well over the past year. More and more frontier equity markets are gaining strength. Both Serbia and Slovenia equity indices are completing 2 year-long base formations. Slovenia SBITOP Index cleared 700 levels; a horizontal resistance for the cup & handle formation. Index should target 970 levels in the medium-term. Serbia SRX USD index is […]
Positive sentiment for the South African rand might be over as the cross rate reaches strong support area formed by the long-term trend line and moving averages. Both 3 year-long trend line and the 200-day moving average are forming support at 10.35 levels. RSI (Relative Strength Index) is also testing 50 levels; which is considered to be the lower […]
Oil prepares for a massive breakout in the following weeks/months. Magnitude of the price change is likely to make the oil “the hot topic” in the financial media. Why am I saying this? 1) Breakouts from low volatility periods are usually very powerful and are followed by strong directional moves. United States Brent Oil ETF (BNO) and ETFS […]
Cotton price prepares for a strong breakout from its 2 year-long base formation. Recent consolidation can be one of the two bullish chart formations. A cup with handle chart pattern or an ascending triangle. If it is the former, Cotton should break above 94 levels in the short-term. Breakout above 94 levels will clear 2 year-long horizontal […]
Peru’s IGRA index has been one of the weakest from the emerging market equities. After testing 23,850 levels for the third time in the beginning of 2012 IGRA index fell to 14,600 levels. Index formed a clear downtrend below its long-term moving average. Over the past year rebounds have been weak. Index is now testing the horizontal support […]
Still a highly managed currency Chinese yuan is trading above its 200 day moving average – with only one exception since 2005. China was criticized for currency manipulation during the financial crisis between 2008 and 2009. PBOC (The People’s Bank of China) was asked to strengthen the yuan and China to focus on internal demand rather than an export […]
