GLOBAL EQUITY MARKETS – June 9, 2018

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REVIEW

Benchmark for Global equity markets performance, the iShares MSCI All Country World Index ETF (ACWI.O) is challenging the upper boundary of its 4 month-long symmetrical triangle at 73.90 levels. Tight consolidation is taking place above the long-term average which is acting as support at 71.2 levels. Both the long-term average and the lower boundary of the 2 year-long uptrend are forming support around the same levels. ACWI ETF is in a steady uptrend. Decisive breakout above 73.90 can resume the multi-year long uptrend. Failure to move higher can result in another test of the long-term average at 71.2 levels.

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GLOBAL EQUITY MARKETS – June 2, 2018

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REVIEW

Benchmark for Global equity markets performance, the iShares MSCI All Country World Index ETF (ACWI.O) continues to consolidate in a tight range. Last 4 month's consolidation can be identified as a possible symmetrical triangle. Symmetrical triangle is a neutral chart pattern. Price can breakout in any direction. Strong resistance stands at 73.90 levels. Support, formed by both the lower boundary of the symmetrical triangle and the 200-day (40-week) moving average stands at 71 levels. Last 4 month's consolidation is taking place inside the 2 year-long uptrend channel. Long-term trend is upwards. Read More

GLOBAL EQUITY MARKETS – May 26, 2018

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Announcement:

Dear Tech Charts members,

It has been a successful year since the launch of Tech Charts membership service. I'd like to take this opportunity to thank you all for your support. I hope to build a long lasting relationship with all of our members and hope to serve you in the coming years. I'm excited and motivated to improve our membership service every year. Going forward, Tech Charts Global Equity Markets report will include Frontier Markets into its research universe.  Tech Charts follows the MSCI classification for market research. Below is a table that shows MSCI classification for each market. Global Equity Markets report is highlighting developing opportunities in Developed and Emerging Markets. We are now adding Frontier Markets equities to our report. Please note that coverage of a specific market doesn't mean you will find every equity available in that specific market. Global Equity Markets report features selective number of opportunities only if the price chart has a well-defined and mature classical chart pattern.

We have received several requests to include educational videos that explains basic concepts in Technical Analysis. For our members who are new to classical charting principles and technical analysis, we are planning to add new video tutorials. New educational videos on classical chart patterns are being produced as well.

As usual, please feel free to ask questions, send charts for discussions and feedback on any matter regarding your membership service.

I look forward to another great year.

REVIEW

Global equity markets remain in an uptrend. The iShares MSCI All Country World Index ETF is trading above its long-term average. Over the past 2 years the ETF has been moving in an upward trend channel. However, past 4 month's price action is now becoming more clear as a sideways consolidation. The ACWI ETF is possibly forming a 4 month-long symmetrical triangle with the upper boundary acting as resistance at 73.9 and support at 71.2 levels. Until the recent consolidation is resolved in one direction we will expect more choppy price action. A breakdown will confirm the 4 month-long symmetrical triangle as a bearish continuation chart pattern. Such price action will also take out the lower boundary of the trend channel and the 200-day (40 week) moving average and suggest lower prices. A decisive break above 73.90 levels will keep the long-term uptrend intact and push the ACWI ETF towards 77-78 area (previous high).

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Tech Charts Year in Review – Year One

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Tech Charts Year in Review - Year One May 2018 
  • A study on Chart Pattern Reliability with the available sample data over the past year
  • Chart patterns with horizontal boundaries have been more reliable compared with breakouts from chart patterns with diagonal boundaries
  • Long-term trends impact the number of bullish and bearish chart pattern setups and breakout opportunities
  • Rectangles, H&S continuations, H&S bottoms and Ascending triangles have been reliable with breakouts from well-defined horizontal boundaries
  • Developing breakout opportunities
  • Live Q&A
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DUBAI TRADERS SUMMIT – RECTANGLE

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In April 2018, I was invited to share my experiences in charting the Middle East and Africa equity markets at the Dubai Traders Summit. The event was not recorded. I wanted to make this presentation available for our members so I recorded this educational video, featuring parts of the presentation I shared at the event. This section focuses on Rectangle examples. I hope you will find it valuable.

 

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GLOBAL EQUITY MARKETS – May 19, 2018

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REVIEW

We are seeing a decoupling in terms of performance in the Global Equity Markets. Developed markets continue to remain strong whereas Emerging markets start to weaken. The charts below show both the iShares MSCI All Country World Index ETF and the iShares MSCI Emerging Markets Index ETF in a steady uptrend. However, over the past few weeks, the iShares MSCI All Country World Index ETF managed to rebound from its long-term average but the iShares MSCI Emerging Markets Index ETF struggled around the strong support area. Failure to recover from strong support area can result in a breakdown and larger scale correction for the Emerging Markets. The iShares MSCI Emerging Markets Index ETF is testing the 200-day (40 week) moving average.

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GLOBAL EQUITY MARKETS – May 12, 2018

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REVIEW

Global equities experienced renewed strength during the week. Weekly candles on both the iShares MSCI All Country World Index ETF and the iShares MSCI Emerging Markets Index ETF opened at the lowest and closed at the highest point suggesting buyers domination throughout the week. ACWI ETF is breaking out of its 4 month-long tight consolidation. The benchmark for Global equity markets performance has been in a steady uptrend. Recent tight consolidation took place above the long-term average and the lower boundary of its 2 year-long trend channel. The iShares MSCI Emerging Markets Index weighed down by U.S. Dollar strength, still managed to hold on to its 200 day (40 week) average and rebounded from the lower boundary of its 2 year-long uptrend. Both ETFs are in a steady uptrend.

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DUBAI TRADERS SUMMIT – H&S BOTTOM

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In April 2018, I was invited to share my experiences in charting the Middle East and Africa equity markets at the Dubai Traders Summit. The event was not recorded. I wanted to make this presentation available for our members so I recorded this educational video, featuring parts of the presentation I shared at the event. This section focuses on H&S bottom examples. I hope you will find it valuable.

 

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GLOBAL EQUITY MARKETS – May 5, 2018

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Note on Dubai Traders Seminar:

Several Tech Charts members asked if the Dubai Traders Seminar presentation will be recorded and made available on Tech Charts website. Unfortunately the seminar was not recorded by the organizer. However, I will make this presentation available to our members via short educational videos in the following days/weeks. Each part of the presentation will address specific chart pattern examples presented in separate videos and will be archived under Educational Videos.

REVIEW

Global equity markets is getting closer to a strong directional movement. Tight consolidations on both the iShares MSCI All Country World Index ETF and the iShares MSCI Emerging Markets Index ETF suggest breakouts can result in a trend period. Consolidations are followed by trends and vice versa. Both ACWI and EEM are trading above their long-term moving averages and inside the boundaries of multi-month long uptrend channels. Breakdown below the long-term averages and the lower boundary of trend channels can result in a larger scale correction. At this point, with the current available information, we can conclude that the long-term uptrend is still intact. We are very close to the completion of last quarter's tight consolidation.

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GLOBAL EQUITY MARKETS – April 28, 2018

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REVIEW

Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation. Doji convey a sense of indecision or tug-of-war between buyers and sellers. Prices move above and below the opening level during the session, but close at or near the opening level. The result is a standoff. The relevance of a doji depends on the preceding trend or preceding candlesticks. After an advance, or long white candlestick, a doji signals that the buying pressure is starting to weaken. After a decline, or long black candlestick, a doji signals that selling pressure is starting to diminish. Doji indicate that the forces of supply and demand are becoming more evenly matched and a change in trend may be near. Doji alone are not enough to mark a reversal and further confirmation may be warranted.

The Hammer and Hanging Man look exactly alike, but have different implications based on the preceding price action. Both have small real bodies (black or white), long lower shadows and short or non-existent upper shadows. As with most single and double candlestick formations, the Hammer and Hanging Man require confirmation before action.

Hammer is a bullish reversal pattern that forms after a decline. In addition to a potential trend reversal, hammers can mark bottoms or support levels. After a decline, hammers signal a bullish revival. The low of the long lower shadow implies that sellers drove prices lower during the session. However, the strong finish indicates that buyers regained their footing to end the session on a strong note. While this may seem enough to act on, hammers require further bullish confirmation. Confirmation could come from a gap up or long white candlestick.

After the sharp sell-off in the beginning of 2018, Global equity markets started consolidating in a tight range. During the last quarter's consolidation, volatility dropped. Both the iShares MSCI All Country World Index ETF, a benchmark for Global Equity Markets performance and the iShares MSCI Emerging Markets Index ETF, a benchmark for Emerging Markets performance, have settled above their long-term moving averages. Price action above the long-term moving average and in the up trend channel suggest that the multi-month long uptrends are still intact on both ETFs .

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