GLOBAL EQUITY MARKETS – November 18, 2017

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Emerging Markets equities continue to remain strong. A widely followed benchmark for the Emerging Markets equity performance, MSCI Emerging Markets index resumes its multi-month uptrend in a steady parallel trend channel. Last one month’s short-term consolidation can be identified as a possible flag; a bullish continuation chart pattern. The lower boundary of the flag at 1,100 level will act as a short-term support. Earlier in July 2017, the MSCI Emerging Markets index cleared a decade-long trend line resistance at 1,015 levels as shown on the monthly scale price chart.

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CONSUMER DISC. SELECT SECTOR SPDR FUND (XLY)

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Consumer Discretionary Select Sector SPDR (XLY) Fund (the Fund) seeks to provide investment results that correspond to the price and yield performance of the Consumer Discretionary Select Sector of the S&P 500 Index (the Index). The Index includes companies from industries, such as automobiles and components, consumer durables, apparel, hotels, restaurants, leisure, media and retailing. The ETF is listed on the New York Stock Exchange. Price chart formed a 5 month-long rectangle with the boundaries acting as resistance at 92.35 and support at 88.15 levels. Both the upper and lower boundary of the rectangle was tested several times. A daily close above 93.25 levels will confirm the breakout from the sideways consolidation with the possible chart pattern price target of 96.6 levels. You can check out the sample video below on bullish rectangle continuation.

Here are some of the sample educational videos you might find valuable.  This sample video explains how to identify rectangles and to calculate possible chart pattern price targets. Tech Charts Educational Videos cover major reversal and continuation chart patterns.

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GLOBAL EQUITY MARKETS – November 11, 2017

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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 5 months, the Euro Stoxx Banking index formed a sideways consolidation that can be identified as a symmetrical triangle. Read more

BREAKAWAY GAPS

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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 from the latest Global Equity Markets report as a case study discussing the breakaway gaps.

In his book Technical Analysis and Stock Market Profits, Richard W. Schabacker discusses different kinds of price gaps. Below are some of the important points he mentions about Breakaway Gaps.

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GLOBAL EQUITY MARKETS – November 4, 2017

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If there is one theme and well-defined similar chart pattern set ups that I need to highlight, it is in the Gold and Silver mining equities. I discussed the developing chart patterns in an earlier Global Equity Markets report and the Interim update. Whenever similar chart patterns are identified on different equities in the same industry and sector, the price action becomes more important. The Tech Charts Watchlist features some of the well-defined chart setups in the gold & mining equities. In a timely manner, we have also added a new video tutorial for members on Descending Triangle as a bearish reversal chart pattern.

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INTERIM UPDATE – November 3, 2017

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French auto industry is showing signs of strength and offering major breakout opportunities. September 30, 2017 Global Equity Markets report featured the breakout from a multi-month base formation on the long-term price chart of PEUGEOT AS. This interim update highlights another major opportunity that is taking place in the same industry.

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INTERIM UPDATE – October 31, 2017

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Students of charts and mainly classical charting principles have to maintain an unbiased view of  the markets. A chart pattern that is identified on a price chart should be the result of pure price action analysis. A global macro view on a commodity or news flow regarding a company can result in second guessing your analysis.  Most of the equity traders, unlike FX and commodity traders are used to looking at charts from the long side. In other words, picking opportunities that are breaking out and trending higher. Over the years, I found the method of looking at charts on an inverted scale very useful in order to challenge any biased view I might have. I believe that applying this technique will help you to overcome any bias during your analysis.

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ANADOLU EFES & ASCENDING TRIANGLE

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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 watchlist section from the latest Global Equity Markets report.

 (AEFES.IS)

Anadolu Efes Biracilik ve Malt Sanayii AS is a Turkey-based company, which is engaged in the production, bottling, selling and distribution of beer under a number of trademarks and also in the production, bottling, selling and distribution of sparkling and still beverages with The Coca-Cola Company trademark. The stock is listed on the Istanbul Stock Exchange. Price chart formed an 18 month-long ascending triangle with the strong horizontal boundary acting as resistance at 22.05 levels. The horizontal boundary was tested several times over the course of the chart pattern. The ascending triangle can act as a reversal chart pattern. A daily close above 22.70 levels will confirm the breakout from the bullish reversal chart pattern with the possible price target of 27.6 levels.

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GLOBAL EQUITY MARKETS – October 28, 2017

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The XAU is a capitalization-weighted index of thirty precious metal mining companies that has been traded on the Philadelphia Stock Exchange since 1983. As its name suggests it includes both gold and silver mining companies. In order to track gold and silver mining companies performance in an index there are several options available for investors, but the two most watched indices are: the NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (called the HUI Index) and Philadelphia Gold and Silver Index (called the XAU Index). Below chart features the Philadelphia Gold and Silver Index. Also this week’s report highlights several great bearish chart setups on Silver mining equities and ETFs.

Over the past 10 months the Philadelphia Gold and Silver Index has been in a sideways consolidation. The index is possibly forming a symmetrical triangle that can act as a bearish continuation chart pattern. Several bearish chart setups in the junior mining companies and ETFs suggest that mining stocks can come under selling pressure in the following weeks. The lower boundary of the 10 month-long symmetrical triangle stands at 80.3 levels. This week’s price action reached the lower boundary of the possible symmetrical triangle. I will monitor the strong support at 80.3 in the following weeks. A breakdown of the multi-month consolidation can result in a downward trend on the XAU index.

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