GLOBAL EQUITY MARKETS – April 8, 2017

/2 Comments/in , , /by

It has been a volatile week in the Global equity markets. There were 2 new breakout alerts. Both stocks cleared strong multi-month horizontal resistances.

#TECHCHARTSALERT

TINGYI CAYMAN ISLANDS HOLDING CORP (0322.HK)

Tingyi (Cayman Islands) Holdings Corp. is a Hong Kong-based investment holding company principally engaged in the production and sales of instant noodles, beverages and instant food products. The stock is listed on the Hong Kong Stock Exchange. Price chart formed a 15 month-long H&S bottom with the right shoulder in the form of a 6 month-long rectangle. The neckline of the H&S bottom standing as a resistance at 9.85 has been tested for 4 times over the past year. The daily close above 10.15 confirmed the breakout from the multi-month base formation. 9.85 levels will now become support. Possible chart pattern price target stands at 13.15 levels.

Read more

JAPAN NIKKEI 225 INDEX

/0 Comments/in , /by

Rectangles are usually considered to be a continuation chart pattern. They form as a trading range during a pause in the trend. The pattern is identifiable by two comparable highs and two comparable lows. Rectangles are sometimes referred to as consolidation ranges or trading areas. The rectangle chart pattern is not complete until a breakout is occurred.

To qualify as a continuation chart pattern, a prior trend should exist. Rectangles can extend for a few weeks or many months. If the pattern is less than 3 weeks, it is usually considered a flag, also a continuation chart pattern. Ideally, rectangles will develop over a 3-month period. Generally, the longer the pattern, the more significant the breakout. The direction of the next significant move can only be determined after the breakout has occurred. The estimated move is found by measuring the height of the rectangle and applying it to the breakout level.

JAPAN NIKKEI 225 INDEX FUTURES 1st month continuation

Japan’s NIKKEI 225 Index is possibly forming a rectangle chart pattern with the boundaries between 18,800 and 19,690. The index is now testing the lower boundary of its 4 month-long sideways consolidation. Due to the tight consolidation range, volatility on both daily and weekly scale reached an extreme low level. These type of low volatility periods are usually followed by strong price action. It is important to note that there are times when a rectangle can act as a reversal chart pattern. A breakdown below the lower boundary at 18,800 will suggest lower prices in the coming weeks. However, failure to breakdown the support at 18,800 and a possible rebound from the current levels will increase the likelihood of a rectangle as a continuation chart pattern, targeting higher levels.

Read more

GLOBAL EQUITY MARKETS – April 1, 2017

/2 Comments/in , /by

After several years of downtrend and a major bear market, Greek equities can offer great opportunities in the following weeks/months. This week’s update features two benchmark equity indices from Greece. Athens General Composite index with a long-term view and FTSE Athex Market index with the latest bullish chart development. In the beginning of 2016, Athens General Index rebounded from the lows of 2012. Over the past year the index remained sideways in a choppy trading range. Last one year’s range bound price action is possibly a bullish ascending triangle with the horizontal boundary standing at 445 levels for the FTSE Athex Market Index and at 665 levels for the Athens General Composite index. The upward sloping lower boundary of the ascending triangle gives the chart pattern its bullish bias. Higher lows is indicative of increasing demand. A daily close above 460 levels on the FTSE Athex Market Index will confirm the breakout from the year-long ascending triangle with a possible price target of 580 levels.

ATHENS GENERAL INDEX (.ATG)


Read more

GLOBAL EQUITY MARKETS – March 25, 2017

/0 Comments/in , /by

Global equity markets continue to offer great opportunities and text book chart pattern developments. In this update I bring to your attention well-defined chart patterns from Asia, Europe, North America and Emerging Markets that are candidates for possible breakouts and I also report fresh breakout alerts. Before we move on to equity markets, I want to draw your attention to a possibility developing in the interest rates and bonds market. During the weekly review of financial markets, I spotted the similar chart development on almost all kinds of bond market ETFs.

ISHARES BARCLAYS 20+YR TREASURY BOND ETF (TLT.O)

ISHARES BARCLAYS 20+YR TREASURY BOND ETF is an exchange traded fund listed on the Nasdaq Stock Exchange. The Fund seeks investment results that correspond generally to the price and yield performance of the long-term sector of the U.S. Treasury market as defined by the Barclays Capital 20+ Year Treasury Index. Price chart of this ETF is possibly forming a 4 month-long double bottom. This chart pattern is still at its early stages. The short-term consolidation remains between 117 and 123 levels. The low for the year 2015 stands at 115 as an other important medium/long-term support level. The latest chart development suggests that in the short/medium-term bonds might be finding support. Price should either break 117 levels on the downside or 123 levels on the upside for the chart pattern to complete.

Read more

GLOBAL EQUITY MARKETS – March 12, 2017

/6 Comments/in , , /by

This week there has been 7 additions to the #TECHCHARTSWATCHLIST. Most of the chart patterns are bullish as major global equity indices continue to remain in a uptrend.

#TECHCHARTSWATCHLIST

SSY GROUP LTD (2005.HK)

SSY Group Limited is an investment holding company principally engaged in the research, development, manufacture and sale of pharmaceutical products. The stock is listed on the Hong Kong Stock Exchange. Price chart of SSY GROUP formed a 10 month-long rectangle with the strong horizontal resistance standing at 2.78 levels. Rectangle is a continuation chart pattern. A daily close above 2.86 will confirm the breakout from the bullish chart pattern. Possible price target for the rectangle stands at 3.2 levels.

SSY GROUP – WEEKLY SCALE

Read more

GLOBAL EQUITY MARKETS – March 4, 2017

/0 Comments/in , , /by

The MSCI Emerging Markets index is created by Morgan Stanley Capital International (MSCI) designed to measure equity market performance in global emerging markets. It is a float-adjusted market capitalization index that consists of indices in 23 emerging economies Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.

Initiated in 1988, the MSCI Emerging Markets Index (MSCI EMI) represented 10 nations with a total world market capitalization of less than 1%. In 2016, the index has since grown to incorporate 23 countries that comprise about 10% of global market cap. Hence, the MSCI EMI is appropriately used as a benchmark for performance by many emerging market growth mutual funds.

The iShares MSCI Emerging Markets ETF seeks to track the investment results of MSCI Emerging Markets Index. This ETF does not include any currency hedging. This means investors in this product gain exposure to the underlying securities and the currencies in which they are denominated. It is an efficient way to take advantage of trends in the emerging markets and cyclical movements related to emerging markets local currencies.

Last week’s update drew attention to the developing bearish candlestick reversal pattern, a shooting star, usually suggests lower prices following its completion. This week’s lower opening and weak closing confirms the short-term pull-back in emerging markets equities.

ISHARES MSCI EMERGING MARKETS ETF - WEEKLY SCALE

ISHARES MSCI EMERGING MARKETS ETF – WEEKLY SCALE

Read more

GLOBAL EQUITY MARKETS – February 25, 2017

/0 Comments/in , , /by

Compared to traditional bar charts, candlestick charts can be more helpful to analyze price action. We can see the relationship between the open and close as well as the high and low. The relationship between the open and close is considered vital information and forms the essence of candlesticks. This week’s price action in global equity markets is worth analyzing with the help of candlestick chart patterns.

dojiDoji are important candlesticks that provide information on their own and as components of in a number of important patterns. 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 between buyers and sellers. Prices move above and below the opening level during the session, but close at or near the opening level. Neither bulls nor bears were able to gain control and a turning point could be developing. 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.

ISHARES MSCI ALL COUNTRIES WORLD INDEX ETF (ACWI.O)

After a year-long uptrend ISHARES MSCI ALL COUNTRIES WORLD INDEX ETF (ACWI.O) reached its 2015 high levels that acted as resistance. This week’s price action formed a Doji on the weekly scale chart. Given that the preceding trend was up and strong, this week’s Doji clearly suggested that the buying power has stalled. Strong horizontal resistance stands at 63 levels. Global equities can experience a consolidation of the earlier gains and possibly a pullback towards the year-long upward trend line. Doji alone is not enough to forecast a reversal. Following week’s price action around the strong resistance will provide valuable information.

ISHARES MSCI ACWI ETF - WEEKLY SCALE

ISHARES MSCI ACWI ETF – WEEKLY SCALE

Read more

GLOBAL EQUITY MARKETS – February 18, 2017

/2 Comments/in , , /by

Energy prices are due for a strong directional movement after volatility reached extreme low levels. 2 month-long tight consolidation should end soon, possibly resulting in a sharp price movement. After breaking above 51.95 resistance, Brent Crude Oil entered in to a short-term sideways consolidation. Last 2 month’s price action remained range bound between 52.50 and 56.10. Breakout above 56.10 will add further momentum to Brent Crude oil prices that are already in a uptrend for the past year.

BRENT CRUDE OIL - WEEKLY SCALE

BRENT CRUDE OIL – WEEKLY SCALE

Read more

GLOBAL EQUITY MARKETS-11/02/2017

/4 Comments/in , , /by

This week’s update highlights 3 major technical developments. These themes can be seen in the TECHCHARTSWATCHLIST and TECHCHARTSALERT.

  • Russell 2000 Index is breaking out of its month-long flag continuation
  • EUROPE STOXX 600 index is preparing for a breakout from its short-term consolidation
  • HONG KONG & CHINA equities are gaining strength with clear breakout signals and breakout candidates

Russell 2000 index broke out of its month-long flag consolidation on Friday. The small-cap benchmark equity index should take out the minor high at 1,392 to add further momentum to the recent breakout. Outlook is positive for U.S. equities.

RUSSELL 2000 INDEX - DAILY SCALE

RUSSELL 2000 INDEX – DAILY SCALE

Europe’s STOXX 600 index remained range-bound and closed at the upper end of its month-long consolidation. Latest consolidation can be identified as a continuation flag. Breakout above 367 levels will confirm the bullish continuation chart pattern and suggest higher levels for the European equities in the coming weeks. This update features the iSHARES STOXX 600 ETF that is listed in Germany. The ETF has a similar technical outlook. The upper boundary of the month-long consolidation is at 36.73 levels for the Ishares STOXX 600 ETF.

EUROPE STOXX 600 - WEEKLY SCALE

EUROPE STOXX 600 – WEEKLY SCALE

ISHARES STOXX 600 ETF - WEEKLY SCALE

ISHARES STOXX 600 ETF – WEEKLY SCALE

#TECHCHARTSWATCHLIST

HARBIN BANK (6138.HK)

A common chart pattern that is clearly visible on the Hong Kong/China banking & financial stocks is a multi-month H&S bottom reversal. HARBIN BANK is a Hong Kong based investment holding company. Price chart of the stock formed an 18 month-long H&S bottom with the strong horizontal resistance standing at 2.45 levels. The right shoulder of the multi-month H&S bottom took the form of a bullish flag. HARBIN BANK closed the week at the neckline of its multi-month H&S bottom. A daily close above 2.52 levels will confirm the breakout from the major base formation.

HARBIN BANK - WEEKLY SCALE

HARBIN BANK – WEEKLY SCALE

INDUSTRIAL AND COMMERCIAL BANK OF CHINA (1398.HK)

ICBC is principally involved in the provision of banking and related financial services. It is listed on the Hong Kong Stock Exchange. Similar to several banking and financial stocks listed on the Hong Kong Stock Exchange, ICBC is also forming a multi-month H&S bottom with the strong horizontal resistance standing at 5.15 levels. Stock has a short-term resistance at 4.90. Breakout above 4.90 will set the initial target as 5.15.

ICBC - WEEKLY SCALE

ICBC – WEEKLY SCALE

CQRC BANK (3618.HK)

Chongqing Rural Commercial Bank is engaged in the provision of banking services and related financial services in China. Stock is listed on the Hong Kong stock exchange. Price chart of CQRC BANK formed a long-term base formation similar to other financial/bank stocks in Hong Kong. Multi-month H&S bottom has a horizontal resistance at 5.10 levels. A daily close above 5.25 levels will confirm the breakout. H&S bottom price target stands at 6.6 levels.

CQRC BANK - WEEKLY SCALE

CQRC BANK – WEEKLY SCALE

BANK OF CHINA (3988.HK)

Last but not least BANK OF CHINA another Hong Kong listed banking stock forms a similar 16 month-long H&S bottom with a downward sloping neckline which is standing at 3.8 levels. A daily close above 3.88 levels will confirm the breakout from the multi-month bullish reversal. Chart pattern price target stands at 4.65 levels.

BANK OF CHINA - WEEKLY SCALE

BANK OF CHINA – WEEKLY SCALE

CHINA MERCHANTS CHINA DIRECT INVESTMENTS LTD (0133.HK)

China Merchants China Direct Investments Limited is a Hong Kong-based investment holding company principally engaged in financial investment. Price chart of CHINA MERCHANTS formed a 9 month-long bullish ascending triangle with the horizontal resistance standing at 12.05 levels. This week’s close was at the chart pattern boundary. A daily close above 12.40 will confirm the breakout from the bullish continuation chart pattern with a possible price target of 14.

CHINA MERCHANTS - WEEKLY SCALE

CHINA MERCHANTS – WEEKLY SCALE

LINGBAO GOLD (3330.HK)

Lingbao Gold Company Limited is principally engaged in the mining, processing, smelting and sales of gold and other metallic products in the People’s Republic of China (the PRC). The stock is listed on the Hong Kong stock exchange. Price chart formed a 5 month-long symmetrical triangle with the resistance at 1.98. A daily close above 2.04 levels will confirm the breakout from the continuation chart pattern.

LINGBAO GOLD - WEEKLY SCALE

LINGBAO GOLD – WEEKLY SCALE

APOLLO INVESTMENT CORP (AINV.O)

Apollo Investment Corporation is a closed-end, externally managed, non-diversified management investment company. It is listed on the Nasdaq Stock Exchange. Price chart formed a 4 month-long symmetrical triangle with the upper boundary standing at 6.20 levels. A daily close above 6.38 will confirm the breakout from the 4 month-long consolidation.

APOLLO INVESTMENT - WEEKLY SCALE

APOLLO INVESTMENT – WEEKLY SCALE

 SPDR S&P INTERNATIONAL DIVIDEND ETF (DWX)

SPDR S&P INTERNATIONAL DIVIDEND ETF seeks to replicate as closely as possible, before expenses, the price and yield performance of an index that tracks exchange-listed common stocks domiciled in countries outside the United States that offer high dividend yields. The ETF is listed on the NYSE Arca. Price chart of DWX formed a 15 month-long ascending triangle with the strong horizontal resistance standing at 37.45 levels. Over the past 15 months the horizontal resistance was tested for 6 times. Ascending triangle is a bullish chart pattern and it can resolve as a major bottom reversal. A daily close above 38.20 will confirm the breakout from the multi-month consolidation. Ascending triangle price target stands at 45 levels.

SPDR S&P INTL DIV ETF - WEEKLY SCALE

SPDR S&P INTL DIV ETF – WEEKLY SCALE

There were 4 new breakouts this week that are moved from the TECHCHARTSWATCHILST to the TECHCHARTSALERT. Below are the stocks that completed their chart patterns.

#TECHCHARTSALERT

ZEPAK (ZEEP.WA)

Zespol Elektrowni Patnow Adamow Konin SA is a Poland based company engaged in the electricity sector. The stock is listed on the Warsaw Stock Exchange. Price chart formed a  7 month-long ascending triangle with the strong horizontal resistance standing at 14.15 levels. This week’s price action cleared the strong resistance. While the ascending triangle price target stands at 18 levels, strong weekly breakout could be the beginning of a larger scale uptrend that can carry the price towards 20-25 area.

ZEPAK - WEEKLY SCALE

ZEPAK – WEEKLY SCALE

CHINA TAIPING INSURANCE (0966.HK)

China Taiping Insurance Holdings Company Limited is a Hong Kong-based investment holding company principally engaged in insurance businesses. Price chart completed a year-long H&S bottom with a daily close above 18.75 levels. Strong horizontal resistance was at 18.20 levels. H&S bottom price target stands at 22.5 levels.

CHINA TAIPING - WEEKLY SCALE

CHINA TAIPING – WEEKLY SCALE

CHINA COMMUNICATIONS CONSTRUCTION (1800.HK)

CHINA COMM CONS. is an industrial company listed on the Hong Kong Stock Exchange. The company is engaged in the infrastructure construction of ports, roads, bridges and railways. The price chart formed a text-book symmetrical triangle. Symmetrical triangles are usually considered to be continuation chart patterns. This week’s strong price action and a close above 9.65 levels confirmed the breakout with a possible chart pattern price target of 12 levels.

CHINA COMM CONS - WEEKLY SCALE

CHINA COMM CONS – WEEKLY SCALE

INTERFOR CORPORATION (IFP.TO)

Interfor Corporation, formerly International Forest Products Limited, is a Canada-based supplier of lumber products. The Company operates through solid wood segment. The Company offers lumber products to customers in North America, the Asia-Pacific region and Europe. Price chart completed a 5 month-long rectangle continuation chart pattern with a possible price target of 18.5 levels. Strong weekly price action can be the beginning of a larger scale uptrend.

INTERFOR CORPORATION - WEEKLY SCALE

INTERFOR CORPORATION – WEEKLY SCALE