This update will cover several markets. There has been significant developments in the first half of January. I’ve given the title MSCI ALL COUNTRIES WORLD INDEX because I think it is one of the most important chart in this update. However, developments in Copper, Palladium and Emerging Markets index are also exciting. Over the past few weeks […]
One of the strongest bull markets in the metal complex is about to end. Tin is highly used in electronics. It is mixed into solder for circuitry in smartphones. Tin is used in everyday life in almost all electronic item. Notebooks, tablets, smartphones… Chart pattern suggests prices are headed for lower levels as we have […]
For those of you who don’t follow twitter, here are some of the important charts that I shared today. Both MSCI ALL COUNTRIES WORLD INDEX and MSCI EMERGING MARKETS INDEX are at critical levels. Multi-year low volatility in equity indices and commodities (metals) suggest we are approaching strong trend periods. MACD rolls over with steep […]
Negative divergence on Palladium chart is a red flag. Divergences are first warning signals of a possible trend reversal. However they should be confirmed by price action – a decisive breakdown. There are few negative signs on this long-term (monthly scale) chart. 1) Price breached its previous high but failed to hold above that level (865). 2) […]
In a downtrend the lower boundary of a trend channel represents the “negative” extreme and the upper boundary the “positive” extreme. Price is expected to rebound from the positive and negative extremes. A downtrend is likely to reverse when the upper boundary is broken on the upside. Likewise an uptrend is likely to reverse when the lower boundary […]
Malaysia KLSE Composite index formed a head and shoulder chart pattern. Head and shoulder top is a reversal chart pattern and it is bearish. Today the index slipped below the neckline at 1,770 level. Consecutive daily closes below the support at 1,770 level will confirm the breakdown and possibly push the index towards 1,650 levels […]
Parabolic moves are not sustainable. They are also not easy to trade. It is costly to pick a top or a bottom. Price usually doesn’t stop where we think it would stop. However as a chartist I feel the urge to bring such imbalances to your attention. Whatever the instrument, these type of price movements […]
It’s been the year of the U.S. dollar. USD gained strength against most of the developed and emerging market currencies. Central Banks in emerging markets had to adjust interest rates to control currency depreciation. There is one emerging market cross rate that is worth paying attention to. Worst might not be over for the Indonesian […]
Once again copper is at that critical support. The more price tests an important support level the higher the probability of it breaking down. This is the case on copper price chart. 3 levels have been tested several times over the past 3 years. Commodities have been weak but copper held well above major support. […]
Turkish financial sector has been strong over the past few weeks. I don’t have the deep knowledge or the resources to understand the reasoning behind this. I would welcome any thought. But here, I’d like to share some chart evidence that supports further strength in the banking and financial sector stocks in the coming months. I’d also […]
