The Fund seeks to track the investment results of the MSCI All UAE Capped Index, which is designed to measure the equity market performance in the United Arab Emirates. The Fund generally invests at least 80% of its assets in securities of the underlying index or in depository receipts representing securities of the underlying index. The ETF is listed on the Nasdaq Stock Exchange. Price chart possibly formed a 15 month-long H&S continuation or a rectangle with the strong horizontal boundary standing at 17.75 levels. Last 6 month's price action can also be identified as a rectangle; another short-term consolidation, usually acting as a preparation for a breakout. A daily close above 18.10 levels will confirm the breakout from the multi-month trading range with the chart pattern price target of 20 levels. Top 10 holdings of the iShares MSCI UAE Capped ETF is compiled in a table below. Also you can find below some examples of H&S continuation chart patterns that Tech Charts Global Equity Markets reports featured in the past issues.Read More
There is enough technical evidence that emerging markets found strong resistance around the current levels. The MSCI EM USD price index tested its decade-long trend line and also the upper boundary of its year-long trend channel. However, it is still early to call for a possible reversal from the strong resistance area. MSCI EM index is possibly forming a decade-long symmetrical triangle.Read More
ISHARES INTL PREFERRED STOCK ETF (IPFF.K) formed an 18 month-long ascending triangle. IPFF.K has a well-defined horizontal resistance that was tested several times over the course of the chart pattern. Strong horizontal boundary stands at 17.45 levels. Last 5 month's price action can be identified as a rectangle. The 5 month-long rectangle is acting as a launching pattern (learn more about launching patterns - Video Tutorial). The daily close above 17.80 levels confirmed the breakout from the multi-month ascending triangle with the possible price target of 21.40 levels.Read More
Stock prices are either in a follow through trending phase or in a consolidation phase. During a strong trending period, a stock will proceed from one price level to another with very little interruption. During a consolidation period a stock will move in both directions without producing any meaningful or sustained price change.
During periods of consolidation prices tend to form a recognizable chart pattern which helps us to determine the direction and magnitude of the next substantial trend with some degree of accuracy.
Because price action and chart patterns are a result of human interaction, it is possible to find those repeating chart patterns in different markets, in different time frames such as on daily, weekly and monthly scale and in different time periods.
Every week, as I go through 1000’s of charts. I look for select, common characteristics on developing chart patterns. And the chart pattern should be mature on a weekly scale. For me, this means chart patterns in duration between 3 to 24 months. It should have a well-defined and preferably a horizontal chart pattern boundary. I look for chart patterns classified as H&S top/bottom, rectangles, cup & handle continuations, double top/bottoms and flags. I only feature symmetrical triangles that have well-defined boundaries. The boundary of the chart pattern should be tested several times before the breakout takes place. Several tests of a chart pattern boundary is an indication that market participants actually recognized the pattern boundary as an important technical level. A breach of this level would signal a shift in the market dynamics between the bulls and the bears.
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Video tutorials – How patterns form and why they succeed or fail
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Long Term Charts - Video Tutorial
Richard W. Schabacker discussed the importance of chart patterns in the averages, in his book Technical Analysis and Stock Market Profits. He concluded that if many individual issues were to make strong Head and Shoulders formations at exactly the same time, the average chart would, obviously, show a similar Head and Shoulders. However, since the many different stocks do not, as a rule, make their ‘‘peaks and valleys’’ on precisely the same days, the average chart is likely to show a less specialized and distinct pattern. We should, for this reason, expect the averages to show Common or Rounding Turns more often than do the charts of individual issues at times of important reversals.
Most stocks sooner or later will follow the major swings of the market. Individual stocks in a sector or industry group might form similar chart patterns due to economic cycles or sector rotation. These individual stocks can be affected by other factors such as commodity prices.
One should stay alert and start anticipating a major shift in the direction of the trend after finding similar chart patterns developing in a specific sector or industry group. It is important to note that these chart patterns are usually well-defined on the individual stocks when compared with the chart patterns on the averages.The video tutorial discusses what can be next for the European banks by giving examples from the two major trading themes in energy sector equities and mining companies. Read More
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It has been a strong week for equities in emerging Asia and also a strong start for the month of May. South Korea KOSPI index is breaking out to all-time highs by clearing its 6 year-long horizontal resistance at 2,210 levels. The index possibly formed a multi-year long bullish ascending triangle. A strong monthly close will signal positive performance for the coming months. The ascending triangle chart pattern price target stands at 2,750 levels. Emerging Asia is a big component in the MSCI Emerging Markets index. As of May 11, 2017 the top 3 counties in the index are China (26.92%), S.Korea (15.34%) and Taiwan (12.20%).
While the local currency stock market index South Korea KOSPI is breaking out to all-time highs, the U.S. Dollar denominated MSCI S.KOREA price index is few percentage points away from reaching new all-time high levels. The price action is clearly positive. The 9 year-long downward sloping trend line is standing at 460 levels. MSCI S.KOREA index is trying to break out of its multi-year sideways consolidation range.
All eyes will be on the French election this weekend. The two candidates will face off in the second round on May 7. European equities have been strong since the first round election results. Two benchmark indices on Euro Stoxx 50 and Euro Stoxx 600 can put the European equity performance into perspective. Both charts show that uptrends have been intact for some time. Euro Stoxx 50 index broke out of its multi-month base in December 2016 and now very close to reaching its possible price target around 3,285 levels. The price target for the Euro Stoxx 50 Index is calculated by taking the width of the multi-month consolidation and adding it to the breakout point. 3,285-3,300 area is also the upper boundary of the parallel trend channel. On the other hand Euro Stoxx 600 Index is very close to its multi-year strong horizontal resistance at 400 levels. Both indices will face strong technical resistance in the following trading days/weeks. Performance around these strong technical resistance will shed more light on the long-term direction of the European equity performance.
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- CRYPTOCURRENCIES – October 1, 2023October 1, 2023 - 7:30 pm
- GLOBAL EQUITY MARKETS – September 30, 2023September 30, 2023 - 6:05 am
- Is Classical Charting Still Valid? – September 2023 Tech Charts & Factor WebinarSeptember 24, 2023 - 10:45 am
- GLOBAL EQUITY MARKETS – September 23, 2023September 23, 2023 - 5:04 am
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