GLOBAL EQUITY MARKETS – February 16, 2019

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REVIEW

The benchmark for the Global equity markets performance, the iShares MSCI All Country World Index ETF had another strong week pushing the ETF above its 200-day (40-week) moving average. Back to back weekly gains followed the V-bottom reversal from the support level at 63. I think we are likely to see some sort of consolidation around the long-term average. Given the uninterrupted advance from January lows, a short-term pullback can possibly form the right shoulder of a H&S bottom formation. Please note it is still early to call for such development. I want to highlight this possibility as many other benchmarks are forming similar structures. For a good example of a consolidation around the long-term average, you can check the H&S bottom formation in 2016.

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GLOBAL EQUITY MARKETS – February 9, 2019

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The benchmark for the Global equity markets performance, the iShares MSCI All Country World Index ETF (ACWI.O), found resistance at the 200-day moving average. After a sharp rebound from the support area (63 levels), the long-term 200-day moving average was the first important resistance the ETF faced. During any consolidation around the 200-day average or during a pullback, I will be looking for a bullish continuation chart pattern development. For bullish interpretation and a reversal of the downtrend, I would like to see the ETF stabilizing above its long-term average. A good example is the first half of 2016...

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GLOBAL EQUITY MARKETS – February 2, 2019

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The benchmark for the Global Equity markets performance, the iShares MSCI All Country World Index ETF (ACWI.O) reached its 200-day moving average after a strong rebound from the support at 63 levels. Back to back weekly gains pushed the index towards the resistance level I follow and utilize as a trend filter. I consider price action above the long-term average as strong and expect higher levels. Price action below the long-term average shows weakness and can become part of a larger scale downtrend. Both daily and weekly scale price chart for the ACWI ETF hasn't provided a well-defined chart pattern.

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GLOBAL EQUITY MARKETS – January 26, 2019

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The benchmark for Global equity markets performance, iShares MSCI All Country World Index ETF (ACWI.O) had a strong rebound from the support level at 63 levels. V-reversal pushed the ETF towards its long-term moving average at 69.7 levels. In the last quarter of 2018, the ETF broke down its 7 month-long consolidation and started a corrective period. Over the past 5 weeks the ETF had back to back gains that recovered most of December 2018 losses without any pullback. Latest rebound might be due for a short pullback. I will be looking for bullish chart pattern developments to find low risk entry points.

Friday's price action was a gap opening. Below I analyze two gap openings on the iShares MSCI Emerging Markets ETF (EEM) and the iShares MSCI All Country World Index ETF (ACWI.O).

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GLOBAL EQUITY MARKETS – January 19, 2019

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REVIEW

The iShares MSCI All Country World Index ETF, a measure of Global equity markets performance, had a sharp rebound from the support level at 63. V-bottom reversals are difficult to analyze and trade. If we have seen a V bottom and the ETF keeps climbing higher in the following weeks, I will wait for the price to stabilize around the long-term average. During any pullback I will monitor this ETF for short/medium-term bullish continuation chart pattern developments. Long-term 200-day moving average stands at 69.7 levels.

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INTERIM UPDATE – January 17, 2019

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I have been preparing some bullish chart pattern setups to be featured in the weekly Global Equity Markets report on the 19th of January. However, a positive news on China & U.S. trade talks is likely to move some of those names in the last trading day of the week. I thought it is important to be prepared for such breakouts (if they take place). Below are the stocks that are listed on China/Hong Kong exchanges with potential bullish setups.

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Reversal Chart Patterns – January 2019 Tech Charts Webinar

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Reversal Chart Patterns - January 2019 Tech Charts Webinar 
  • We will review some of those chart pattern breakdowns that were featured in the Global Equity Markets report.
  • We will review some of the qualities we look for when identifying reversal chart patterns
  • We will look at some of the developing top formations.
  • We will continue to highlight Tech Charts members favorite chart pattern setups in different equity markets.
  • Live questions from Members
Live questions from Members  
  1. I wondered if you could discuss gold and silver in dollars please? They seem to have bottomed, but not clear on what formations they may be making. 48:25
  2. Japan I have seen some folks draw non-horizontal boundary lines on potential H&S tops. Is this valid? 49:33 Link mentioned VEDANTA LTD (VDAN.NS)
  3. Italy would the buy signal come at a reversal to 15.8 or earlier? 51:16
  4. For the launching patterns you showed - where do you put your stop? Can you discuss trade management? 52:08
  5. Germany had a nice candle right where it should at the target low price, what do we need to see to be a buyer for a reversal upside? 53:44
  6. For PKG the right shoulder was higher than the left shoulder - What are your thoughts on this, do you prefer lower right shoulder? How much of a difference in shoulder height would you ignore? 56:06
  7. Can you talk about volume - how you use it? 57:25 - Link mentioned VOLUME AS A CONFIRMING INDICATOR
  8. Korea has an almost horizontal neck line, valid? 59:40
  9. On the breakdown of the H&S - Are you taking into consideration volume as a confirmation as well? 1:00:11
  10. What is the difference between consolidation, distribution, and continuation patterns? 1:00:44 
  11. You mention a price target on the charts, what about stop loss? Where would you set your stop loss? 1:03:00 Link mentioned ATR Trailing Stop-Loss – H&S Top 
  12. If you are new to trading - How would you suggest starting? 1:03:43
  13. If a breakout signal is missed, would you try to enter at a rebound? 1:07:24
  14. If the price target is met do you take profit on the whole position? Or keep some on and use a trailing stop? 1:08:20
  15. When you draw your diagonal trend channels, do you start with the line on the top of the candles or the bottom? And are the charts linear or log? 1:09:06 
  16. On the DAX why draw the neckline as horizontal? 1:10:23
  17. For ascending and descending triangles are there a minimum/ideal number of contact points you look for to define these? 1:11:45
  18. When you have 2 patterns e.g. H&S and rectangle, which price target should we use? 1:13:40
Recorded live 1.10.2019  Read More

GLOBAL EQUITY MARKETS – January 12, 2019

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REVIEW

The iShares MSCI All Country World Index ETF, a measure of Global equity markets performance, had a sharp rebound from the support level at 63. Back to back weekly gains pushed the index towards the resistance area between 66.3 and 70. Is the recent rebound part of a bottoming process or a counter-trend rally in a downtrend? The answer lies in the following week's price action. V-bottom reversals are difficult to analyze and trade. If we have seen a V bottom and the ETF keeps climbing higher in the following weeks, I will wait for the price to stabilize above the long-term average. If there is a re-test of previous lows in an attempt to form a double bottom, then I will monitor the ETF for a long opportunity. The other possibility is that we see a short-term consolidation before moving higher. That again will alert me to look for bullish setups.

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INTERIM UPDATE – January 8, 2019

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This interim update reviews 2 long-term developing breakout opportunities in Sweden equity market. Both charts patterns are mature and well-defined. Breakouts from these lengthy consolidations can push these stocks to all-time highs. Both chart patterns can act as bullish continuations.

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GLOBAL EQUITY MARKETS – January 5, 2019

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REVIEW

The iShares MSCI All Country World Index ETF (ACWI.O) had another strong weekly close thanks to the Friday's price action. I'm analyzing the latest strength as a rebound in a downtrend. 63 levels remains as the strong support level. Previous support that was breached on the downside will act as resistance at 66.3 levels.

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