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GLOBAL EQUITY MARKETS – May 5, 2018

Dear Tech Chart followers,

Every week Tech Charts Global Equity Markets report features some of the well-defined, mature classical chart patterns under a lengthy watch list 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. Following the breakout alerts and the lengthy watch list, a section on correlation helps members to see the degree of relationship between the stocks and indices in the weekly report.

Below I'm sharing with you a sample report that was published on May 5, 2018. I hope this sample report will give you an idea of what to expect from the weekly Global Equity Markets report that Tech Charts Members receive.

 

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 – May 5, 2018

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

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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