Posts

GLOBAL EQUITY MARKETS – January 12, 2019

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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GLOBAL EQUITY MARKETS – January 5, 2019

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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GLOBAL EQUITY MARKETS – December 29, 2018

Dear Tech Charts members,

One more year is behind us. In the beginning of every year I wish health for family members, friends and their loved ones. Tech Charts community has become a family. I wish all of you a healthy New Year. I hope the new year brings new hopes and aspirations along with the zeal and courage to keep up with those commitments. Wish you all the best.

Kind regards,

REVIEW


Global equity markets performance as measured by the iShares MSCI All Country World Index ETF (ACWI.O) rebounded from oversold levels. In the time frame I analyze price charts (daily, weekly and monthly) from a classical charting perspective there is no clear sign of reversal. V bottoms can take place and they are usually difficult to anticipate and analyze. My best guess is that we see some sort of consolidation after December's sharp sell-off. The consolidation can result in a re-test of previous lows. We will be able to tell as we get new evidence (data points) from the markets. For now I can say that the ACWI ETF (ACWI.O) stabilized around the support at 63 levels. Strong resistance stands at 66.3 levels. The ETF is trading below its long-term average and is in a steady downtrend.

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GLOBAL EQUITY MARKETS – December 22, 2018

REVIEW


Global equity markets performance as measured by the iShares MSCI All Country World Index ETF (ACWI.O) broke down the 3 month-long sideways consolidation by breaching the support at 66.3 levels. Breakdown was followed by a sharp drop towards the next support level at 63 levels. Nothing good happens below the 200-day moving average. Back in October the long-term trend following indicator alerted us to the change in trend. Previous support becomes the new resistance. 66.3 levels will act as short-term resistance if markets experience any rebound. In the short-term, there is no chart pattern that would signal a trend reversal.

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GLOBAL EQUITY MARKETS – December 15, 2018

Announcement:

Dear Tech Charts members,

We have included a new feature to Tech Charts website. At the bottom of each report we have incorporated comment platform DISQUS. Previous comment platform was not allowing members to post charts and have discussions. With this improvement, I hope to have detailed discussions with our members and possibly post breakout alerts related to each week's report. I also hope that Tech Charts members will be able to interact with each other through the DISQUS platform (at the bottom of each weekly report) to share their knowledge on different instruments available to take advantage of breakout opportunities. I hope we will all benefit from this new feature.

REVIEW


Global equity markets performance as measured by the iShares MSCI All Country World Index ETF (ACWI.O), formed a new trading range between 66.3 and 71.3 levels. Over the past 3 months the ETF has been consolidating in a wide range below its long-term (200-day) average. Breakdown of the wide 3 month-long consolidation can send the ETF towards the next support level at 63. If the ETF manages to hold above the support at 66.3 levels, we can expect further consolidation between 66.3 and 71.2.

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CHINA SSE 50 INDEX & FTSE A 50 ETF

Low volatility period begets high volatility and vice versa. Price charts when going through those low volatility periods form one of the classical chart pattern (symmetrical triangle, rectangle, flag/pennant, H&S continuation, right angle triangle) and alert us for a possible breakout. Breakouts from lengthy and low volatility consolidation periods are usually followed by strong breakouts and directional movements. We would like to capture those strong directional movements.

One of the best example for the cyclicality of volatility is the China SSE 50 Index. Strong directional move that took place in the first half of 2018 is now being followed by a tight consolidation (low volatility period) which is likely to be followed by sharp price action in the following weeks/months. Past 5 month’s price action formed a channel in a tight range. Breakout from the 5 month-long channel can either reverse the downtrend that has been intact since the beginning of the year, or resume the downtrend. In either case we are likely to see a strong directional movement. Resistance stands at 2,550 levels.

For those who would like to take advantage of a possible breakout/breakdown on China SSE 50 Index, I feature below the iShares FTSE A50 China Index ETF that is listed on the Hong Kong Stock Exchange.

ISHARES FTSE A50 CHINA INDEX ETF HKD (2823.HK)

The Ishares FTSE A50 China Index ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the FTSE China A50 Index.The ETF is listed on the Hong Kong Stock Exchange. Price chart formed a 4 month-long descending triangle with the horizontal boundary acting as strong support at 11.9 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close below 11.7 levels will confirm the breakdown from the 4 month-long descending triangle with the possible chart pattern price target of 10.6 levels.

The charts below show another market, Singapore Derivatives Exchange, where China A50 index can be traded. Both the daily and weekly scale price charts show the developing rectangle with well-defined horizontal boundaries. The lower boundary of the 5 month-long consolidation has been tested several times. A decisive breakdown can confirm the rectangle as a bearish continuation with the possible chart pattern price target of 9,660 levels.


Tech Charts Membership

By becoming a Premium Member, you’ll be able to improve your knowledge of the principles of classical charting.

With this knowledge, you can merge them with your investing system. In fact, some investors use my analyses to modify their existing style to invest more efficiently and successfully.

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As a Premium Member of Aksel Kibar’s Tech Charts,

You will receive:

  • Global Equities Report. Delivered weekly.
  • Classical charting principles. Learn patterns and setups.
  • Actionable information. Worldwide indices and stocks of interest.
  • Risk management advice. The important trading points of each chart.
  • Information on breakout opportunities. Identify the ones you want to take action on.
  • Video tutorials. How patterns form and why they succeed or fail.
  • Watch list alerts. As they become available so you can act quickly.
  • Breakout alerts. Usually once a week.
  • Access to everything (now and as it becomes available)
    o Reports
    o Videos and video series
  • Multi-part webinar course. You learn the 8 most common charting principles.
  • Webinars. Actionable and timely advice on breaking out chart patterns.

For your convenience your membership auto renews each year.

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GLOBAL EQUITY MARKETS – December 8, 2018

Announcement: Dear Tech Charts members, We have included a new feature to Tech Charts website. At the bottom of each report we have incorporated comment platform DISQUS. Previous comment platform was not allowing members to post charts and have discussions. With this improvement, I hope to have detailed discussions with our members and possibly post breakout alerts related to each week's report. I also hope that Tech Charts members will be able to interact with each other through the DISQUS platform (at the bottom of each weekly report) to share their knowledge on different instruments available to take advantage of breakout opportunities. I hope we will all benefit from this new feature.

REVIEW


Global equity markets performance as measured by the iShares MSCI All Country World Index ETF (ACWI.O) reversed from its long-term moving average resistance at 71.3 levels. In the beginning of October the index broke down its 7 month-long consolidation and the 200-day moving average. Since then the ETF has challenged the strong resistance area between 71 and 71.5 levels but failed to breach higher. This week's sell-off pulled the ACWI ETF towards the minor support at 66.5 levels. Failure to hold above the short-term support can send the index to the next level at 63 levels. The iShares MSCI All Country World Index ETF is trading below its long-term average and is in a downtrend.

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GLOBAL EQUITY MARKETS – December 1, 2018

REVIEW


The iShares MSCI All Country World Index ETF (ACWI.O) continues to consolidate below its long-term average at 71.4 levels. 71-71.4 area will act as strong resistance for the Global equity benchmark. Over the past few months the ETF has been consolidating in a wide range between 66.5 and 71 levels. I use the 200-day moving average as a trend filter. Price action below the long-term average warns us of possible weakness (in the form of further choppy price action or continued downward momentum).

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GLOBAL EQUITY MARKETS – November 24, 2018

REVIEW


The longer the price remains below the long-term averages the more established that downtrend will become. The benchmark for the Global Equity Markets performance, iShares MSCI All Country World Index ETF (ACWI.O) broke down the lower boundary of its multi-month long consolidation and its long-term average around same time. Sharp sell-off was followed by a pullback to the chart pattern boundary. This week's price action resumed the downtrend. The minor low around October lows (66) will act as short-term support. Breakdown below the October lows can send the ACWI ETF towards the next support level at 63 levels. Strong resistance area remains between 71 and 71.5 levels. Until we see a recovery above the resistance area (71-71.5), we will expect the weakness to resume in the Global Equity Markets.

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CHINA SSE 50 INDEX & FTSE A 50 ETF

Low volatility period begets high volatility and vice versa. Price charts when going through those low volatility periods form one of the classical chart pattern (symmetrical triangle, rectangle, flag/pennant, H&S continuation, right angle triangle) and alert us for a possible breakout. Breakouts from lengthy and low volatility consolidation periods are usually followed by strong breakouts and directional movements. We would like to capture those strong directional movements.

One of the best example for the cyclicality of volatility is the China SSE 50 Index. Strong directional move that took place in the first half of 2018 is now being followed by a tight consolidation (low volatility period) which is likely to be followed by sharp price action in the following weeks/months. Past 5 month’s price action formed a channel in a tight range. Breakout from the 5 month-long channel can either reverse the downtrend that has been intact since the beginning of the year, or resume the downtrend. In either case we are likely to see a strong directional movement. Resistance stands at 2,565 levels.

For those who would like to take advantage of a possible breakout/breakdown on China SSE 50 Index, I feature below the iShares FTSE A50 China Index ETF that is listed on the Hong Kong Stock Exchange.

ISHARES FTSE A50 CHINA INDEX ETF HKD (2823.HK)

The Ishares FTSE A50 China Index ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the FTSE China A50 Index.The ETF is listed on the Hong Kong Stock Exchange. Price chart formed a 4 month-long descending triangle with the horizontal boundary acting as strong support at 11.9 levels. The horizontal boundary was tested several times over the course of the chart pattern. A daily close below 11.7 levels will confirm the breakdown from the 4 month-long descending triangle with the possible chart pattern price target of 10.6 levels.


Tech Charts Membership

By becoming a Premium Member, you’ll be able to improve your knowledge of the principles of classical charting.

With this knowledge, you can merge them with your investing system. In fact, some investors use my analyses to modify their existing style to invest more efficiently and successfully.

Get Access Now

As a Premium Member of Aksel Kibar’s Tech Charts,

You will receive:

  • Global Equities Report. Delivered weekly.
  • Classical charting principles. Learn patterns and setups.
  • Actionable information. Worldwide indices and stocks of interest.
  • Risk management advice. The important trading points of each chart.
  • Information on breakout opportunities. Identify the ones you want to take action on.
  • Video tutorials. How patterns form and why they succeed or fail.
  • Watch list alerts. As they become available so you can act quickly.
  • Breakout alerts. Usually once a week.
  • Access to everything (now and as it becomes available)
    o Reports
    o Videos and video series
  • Multi-part webinar course. You learn the 8 most common charting principles.
  • Webinars. Actionable and timely advice on breaking out chart patterns.

For your convenience your membership auto renews each year.

Get Access Now