In April 2012 I analyzed the downtrend on the Chinese GDP and the SSE 50 Index (April 13, 2012 – SSE50 Index & China GDP). Chinese equities were trending lower since the mid-2009 and the GDP growth since the beginning of 2010. Equity markets acted as a perfect leading indicator. I’ve concluded that until we see a change […]
After more than 3 year-long downtrend, Chinese equity index SSE 50 is now showing signs of strength. In the last part of 2012, Chinese equities rallied sharply from three-year low levels. Sharp reversal on the SSE 50 Index first breached the long-term moving average at 1,670 levels and then broke above the downward trend line at 1,750 levels. We are […]
Japanese equities are rising and the Japanese Yen is weakening. These two are not very common comments when we take the Nikkei 225 and USD/JPY medium/long-term price trends into consideration. Nikkei 225 Index has been trending lower in a wide trend channel over the past 3 years. Wide swings have bounced off the boundaries of the downward trend channel […]
While equities have performed well, commodities have shown relative weakness. From the commodities, agricultural have significantly lagged the rest. The chart below analyzes Corn price over the past 3 months. Sideways consolidation is taking place above the 200-day moving average, which acted as a support for the past 3 months. Boundaries of the possible symmetrical triangle formation are 710 and 760. Failure […]
Few days back I gave POLAND WIG20 Index as an example of a 2 year-long flat range breakout. We are seeing global strength in equities and indices are breaking out of long-term consolidation patterns. Today I’m looking at Czech Republic Prague SE Index. Symmetrical triangles are usually formed as continuation patterns. However, it is always better to wait for a […]
Another perfect example for a flat range breakout can be seen on the WIG 20 Index. Poland’s WIG 20 Index cleared the 2 year-long resistance at 2,450 levels. With last week’s decisive breakout above the strong resistance WIG 20 now targets 2,800-2,900 area. Technical chart pattern can be either analyzed as a rectangle or a double […]
Lengthy consolidation periods are usually followed by strong breakouts. From those breakouts, flat ranges are more reliable. Though one should always be prepared for a false breakout. Friday’s price action on the CHF/USD was strong and the cross rate has clearly breached above the horizontal resistance at 1.085 levels. Since mid-September CHF/USD has been consolidating […]
After reversing from 35 levels in the beginning of 2011, Sugar price spent the past two years in a correction by pulling back to its long-term trend line. 9 year-long trend support met the price at 19 levels. As price reached the long-term support, downward momentum weakened and relative strength index generated positive divergences on the weekly scale […]
In November I’ve updated the Lumber chart and drew attention to the strong horizontal resistance at 327 levels. This was a 3 year-long resistance and I expected to see a pause after the strong rally. While the price took a breather for few weeks, we haven’t seen much of a pullback from the strong resistance. […]
