Over the past few months Tech Charts Global Equity Markets report analyzed the Europe's EURO STOXX BANKING INDEX and discussed the possibility of a sideways consolidation that can be identified as a 7 month-long symmetrical triangle. The index remained in a tight range for the past months. 2017 ended with the Euro Stoxx Banking index testing the lower boundary of its multi-month consolidation and the 200-day (40 week) moving average at 129 levels.
Every week Tech Charts Global Equity Markets report features some of the well-defined, mature classical chart patterns under a lengthy watchlist and the chart pattern breakout signals that took place during that week. Global Equity Markets report covers single stocks from developed and emerging markets, ETF’s and global equity indices. The report starts with a review section that highlights the important chart developments on global equity benchmarks. This blog post features one of several great chart analysis that were highlighted in the breakout alerts section from the previous Global Equity Markets report.
UBS Group AG is a holding company and conducts its operations through UBS AG and its subsidiaries. The Company comprises Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. The stock is listed on the Swiss Stock Exchange. Price chart formed a year-long rectangle with the strong horizontal boundary acting as resistance at 17.50 levels. The upper boundary of the rectangle was tested several times over the course of the chart pattern. The daily close above 18 levels confirmed the breakout from the bullish continuation chart pattern with the possible price target of 19.80.
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Dear Tech Charts members,
2017 has been a special year for me. I made several decisions; the most important ones were moving to a new country with my family and launching the Tech Charts membership service. Like with our decisions with trading opportunities, life decisions require the leap of faith. Good or bad, we need to step to the line and take the next opportunity in our life. Without God's blessing and Tech Charts members support this wouldn't have come to fruition. I've taken this challenge and enjoyed every part of it and I look forward continuing to add value to your decision making and learning experience in the field of classical charting principles and technical analysis.
In the beginning of every year I wish health for family members, friends and their loved ones. Tech Charts community has become a family. I wish all of you a healthy New Year.
Kind regards,
2017 was a strong year for Global Equity Markets. In the second quarter of 2017, iShares MSCI All Country World Index ETF broke out to all-time highs. The daily price chart formed a year-long upward trend channel and the steady uptrend resumed between the boundaries of the steep trend channel. Over the past month the ACWI ETF formed a minor low which now acts as a short-term support at 70.80 levels. Both the 20 month-long uptrend and the year-long trend channel are still intact.
Over the past few weeks I reviewed the UK FTSE 100 index. I believe it is one of the most important long-term opportunity for global equity investors. There are couple of technical developments that I really like about the UK FTSE 100 index chart. First one is that the index cleared its multi-decade long horizontal resistance and reached all-time highs. Stocks or indices that clear long-term resistances and reach all-time highs enter "uncharted territory". Uncharted territory is the path of least resistance. In other words there is no previous price level that the index would find resistance.
Vale S.A. is a global producer of iron ore and iron ore pellets, key raw materials for steelmaking, and producer of nickel. The Company also produces copper, metallurgical and thermal coal, potash, phosphates and other fertilizer nutrients, manganese ore, ferroalloys, platinum group metals, gold, silver and cobalt. The stock is listed on the Sao Paulo Stock Exchange. It is also listed on the New York Stock Exchange via depository receipts. This interim update features both the Sao Paulo Stock Exchange and NYSE listing.
Every week Tech Charts Global Equity Markets report features some of the well-defined, mature classical chart patterns under a lengthy watchlist and the chart pattern breakout signals that took place during that week. Global Equity Markets report covers single stocks from developed and emerging markets, ETF’s and global equity indices. The report starts with a review section that highlights the important chart developments on global equity benchmarks. This blog post features one of several great chart analysis that were highlighted in the review section from the latest Global Equity Markets report.
Equity indices of the South East Asia Emerging Markets are showing strength. The Philippines Stock Exchange index cleared its 2 year-long horizontal resistance at 8,125 levels and reached all-time highs. Since then, the index pulled back to the broken resistance which is now acting as a strong support. As long as 8,125 level holds, we can expect the Philippine equity market to remain strong and trend higher.
Global Equity Markets continue to remain in a steady uptrend with the iShares MSCI All Country World Index ETF trending higher in a year-long trend channel. The ETF is also holding above the steep 19 month-long trend line. At this point, there is no clear chart pattern that would suggest a top reversal. Uptrend is intact with the minor support standing at 69.4 levels.
During established up trends pullback to the long-term averages are considered to be low risk entry points. A widely followed trend indicator is the 200 day moving average. Price action above the 200 day moving average is recognized as an uptrend, while price trading below the 200 day (40 week) average is considered to be a downtrend. In the last quarter of 2016, the Euro Stoxx Banking index breached its long-term average on the upside what was considered to be the beginning of a possible uptrend. Since then, each pullback found support at the long-term moving average, confirming the steady uptrend. Over the past 6 months, the Euro Stoxx Banking index formed a sideways consolidation that can be identified as a symmetrical triangle. Read More
After breaking out to all-time highs in the beginning of 2017, UK FTSE 100 Index is still looking for direction as the last several-months price action formed a possible bullish continuation chart pattern. 7 month-long sideways consolidation can be identified as a possible ascending triangle with the lower boundary acting as support at 7,300 and the upper boundary as resistance at 7,600 levels. The upward sloping lower boundary and the horizontal upper boundary gives the chart pattern its bullish bias, suggesting buyers are able to bid the price higher at every pullback. Latest correction not only found support at the lower boundary of the possible ascending triangle but also at the long-term 200 day (40 week) moving average. If the support at 7,300 level holds, we can expect a rebound towards 7,600 levels.
