GLOBAL EQUITY MARKETS-12/03/2017

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

SAMSONITE INTERNATIONAL (1910.HK)

Samsonite International S.A. is principally engaged in the design, manufacture, sourcing and distribution of luggage, business and computer bags, outdoor and casual bags, travel accessories and slim protective cases for personal electronic devices. The stock is listed on the Hong Kong Stock Exchange. Price chart of Samsonite formed a 10 month-long symmetrical triangle. Symmetrical triangles can be continuation as well as reversal chart pattern. The boundaries of the contracting consolidation range is between 21.80 and 25 levels. A daily close above 25.75 will confirm this as a continuation chart pattern with a possible price target of 32 levels.

SAMSONITE INTERNATIONAL – WEEKLY SCALE

MICROPORT SCIENTIFIC CORP (0853.HK)

MicroPort Scientific Corporation is a Hong Kong-based investment holding company principally engaged in the manufacture and sales of medical products. The stock is listed on the Hong Kong Stock Exchange. Price chart formed a 4 month-long symmetrical triangle. A daily close above 6.18 will confirm the chart pattern as a continuation with a possible price target of 6.65. The boundaries of the consolidation are between 5.57 and 5.95.

MICROPORT – WEEKLY SCALE

RELO GROUP (8876.T)

Relo Group, Inc., formerly Relo Holdings, Inc., is a Japan-based company principally engaged in the provision of enterprises welfare outsourcing services. The stock is listed on the Tokyo Stock Exchange. Price chart of Relo Group formed an 8 month-long symmetrical triangle with the upper boundary standing at 17,550 levels. This week’s price action was strong and the stock finished the week at the upper boundary of the possible continuation chart pattern. A daily close above 18,100 levels will confirm the breakout with a possible price target of 22,500.

RELO GROUP – WEEKLY SCALE

PARK24 CO (4666.T)

PARK24 Co., Ltd. is primarily engaged in parking business. The Parking Lot segment provides hourly and monthly parking service, though sublease contract, in which it leases idle land from land owners, and though management contract with owners of the parking facilities. It also conducts management and operation of incidental facilities of parking lots. The stock is listed on the Tokyo Stock Exchange. Price chart formed a bearish descending triangle. The horizontal boundary at 2,950 levels is acting as support. A daily close below 2,860 levels will confirm the breakdown with a possible chart pattern price target of 2,350 levels.

PARK 24 – WEEKLY SCALE

NIPPON CONCRETE INDUSTRIES (5269.T)

NIPPON CONCRETE INDUSTRIES CO., LTD. is a Japan-based company mainly engaged in the manufacture and sale of poles, piles and civil engineering products, the purchase of raw materials, as well as the transportation of products and the provision of contracted construction works. The stock is listed on the Tokyo Stock Exchange. Price chart of Nippon Concrete Industries formed a 6 month-long rectangle continuation chart pattern. The weekly close was above the upper boundary of the rectangle chart pattern. Edwards and Magee in their book Technical Analysis of Stock Trends suggest that a stock should breakout by a minimum 3% margin above the resistance for a clear chart pattern breakout signal. According to this guideline, a daily close above 400 levels will confirm the breakout from the 6 month-long rectangle. Possible chart pattern price target stands at 467 levels.

NIPPON CONCRETE – WEEKLY SCALE

BIOGEN INC (BIIB.O)

Biogen Inc. is a biopharmaceutical company. The stock is listed on the Nasdaq Stock Exchange. Price chart of Biogen is forming a 6 month-long symmetrical triangle with the boundaries between 255 and 298 levels. A daily close above 307 levels will confirm the symmetrical triangle as a continuation chart pattern with a possible price target of 357.

BIOGEN – WEEKLY SCALE

There were 4 new chart pattern breakout signals under #TECHCHARTSALERT.

 #TECHCHARTSALERT

BBVA (BBVA.MC)

Banco Bilbao Vizcaya Argentaria, S.A. is a diversified international financial company engaged in retail banking, asset management, private banking and wholesale banking. The stock is listed on the Madrid Stock Exchange. Price chart formed a 14 month-long H&S bottom with the right shoulder in the form of a bullish ascending triangle. This week’s price action broke out of both bullish chart patterns. A daily close above 6.80 confirmed the breakout with a possible H&S bottom price target of 8.6 levels.

BBVA – WEEKLY SCALE

PARGESA HOLDING (PARG.S)

Pargesa Holding SA is a Switzerland-based investment holding company engaged in various industry and services sectors, through its holdings in a number of operating companies. The stock is listed on the Swiss Stock Exchange. Price chart of Pargesa Holding formed a 10 month-long ascending triangle with the horizontal boundary standing at 68 levels. This week’s price action was strong with a close at the highest level. A new chart pattern breakout signal is triggered this week with a close above 69.35 levels. Ascending triangle price target stands at 76 levels.

PARGESA HOLDING – WEEKLY SCALE

SOFINA SA (SOF.BR)

SOFINA  is a Belgium-based holding company that invests, directly and indirectly, in companies from various sectors. Price chart formed a 6 month-long rectangle with the resistance standing at 128.75 levels. A new chart pattern breakout signal is triggered with a daily close above 131 levels. This week’s strong price action completed the 6 month-long continuation chart pattern with a possible price target of 145 levels.

SOFINA – WEEKLY SCALE

LPP SA (LPPP.WA)

LPP SA is a Poland-based company engaged in the apparel and accessories industry. The stock is listed on the Warsaw Stock Exchange. Price chart formed a year-long H&S bottom with a downward sloping neckline.  The right shoulder took the form of a 4 month-long rectangle. A new chart pattern breakout signal is triggered with a daily close above 6,230 levels. This week’s price action broke out of both bullish chart patterns, the H&S bottom and the rectangle. H&S bottom chart pattern price target stands at 8,000 levels.

LPP – WEEKLY SCALE

GLOBAL EQUITY MARKETS – 04/03/2017

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

MSCI ACWI is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. This index contains stocks from 46 different countries. There are 23 countries classified as developed markets and 23 countries considered emerging markets. Typically the index is built first at the country level, and then the 46 indexes are aggregated into the MSCI All Country World Index. A similar index exists that contains the same countries with the exception of the U.S. – the MSCI ACWI ex U.S. ISHARES MSCI ACWI and ISHARES MSCI ACWI ex US tracks the indices mentioned above. Last week’s Doji was formed at a critical resistance. This week’s price action was not negative but still respected the resistance at 63 levels. In the following weeks continuation of strength in global equities will depend on how this widely followed benchmark will cope with the strong resistance at 63 levels. This update features also the Ishares MSCI ACWI ex. US ETF.

ISHARES MSCI ACWI ETF – WEEKLY SCALE

ISHARES MSCI ACWI ex US ETF – WEEKLY SCALE

Following a strong uptrend, it is normal for the global equity indices to experience set backs. Especially when indices reach strong technical resistance levels. However, not all stocks will reverse and trend lower. There can still be several stocks that reach new all time highs or break out of lengthy consolidations. This can also be said for the country indices. It is those type of stocks or indices that one would like to be involved in. Stocks that hold well during market set backs and manage to trend higher, will emerge as market leaders once the momentum picks up. This week’s watchlist includes several breakout candidates in global equities.

In Developed Markets, European equities are clearly showing strength with both EURO STOXX 600 and FTSE 100 recording strong weekly closes. Euro Stoxx 600 completed a month-long flag continuation chart pattern and it is now resuming the uptrend. One of the most positive technical development in the equity indices has been the long-term breakout on the FTSE 100 index to all-time high levels. Quarterly scale graph clearly shows the big picture and the significance of the latest breakout to all-time high levels.

EURO STOXX 600 – WEEKLY SCALE

FTSE 100 INDEX – QUARTERLY SCALE

It is important to note that weekly Global Equity Markets updates will also feature bearish chart developments as well as bullish set ups on stocks as they develop. These will be in the form of H&S tops, Double tops, Rectangle reversals, Descending triangles and rectangle continuation chart patterns in a downtrend. These type of alerts will most likely occur when most of the equity indices are in an established downtrend and most of the chart pattern completions are on the downside with major breakdowns.

This week 6 new charts were added to the #TECHCHARTSWATCHLIST.

#TECHCHARTSWATCHLIST

PARGESA HOLDING (PARG.S)

Pargesa Holding SA is a Switzerland-based investment holding company engaged in various industry and services sectors, through its holdings in a number of operating companies. The stock is listed on the Swiss Stock Exchange. Price chart of Pargesa Holding formed a 10 month-long ascending triangle with the horizontal boundary standing at 68 levels. Ascending triangle is a bullish chart pattern that can act as reversal as well as continuation. A daily close above 69.35 levels will confirm the breakout from the multi-month bullish chart pattern with a possible price target of 76.

PARGESA HOLDING – WEEKLY SCALE

XING AG (OBCGn.DE)

Xing AG is a Germany-based operator of a social network for business professionals in German-speaking countries. The platform, XING, allows professionals from all kinds of different industries to meet up, find jobs, colleagues, new assignments, cooperation partners, experts and generate business ideas. The stock is listed on Germany XETRA DAX. Price chart of Xing AG formed a 16 month-long ascending triangle with the strong horizontal boundary standing at 196 levels. This week’s close was at the pattern boundary. Xing AG is trying to breakout to all-time high levels. A daily close above 202 levels will confirm the breakout from the multi-month bullish continuation chart pattern with a possible price target of 250.

XING AG – WEEKLY SCALE

ISELECT LTD. (ISU.AX)

iSelect Limited operates in the online product comparison sector. The Company’s principal activities include health, life and car insurance policy sales, mortgage brokerage, energy, broadband and financial referral services. The stock is listed on the Australia Stock Exchange. Price chart formed a 4 month-long ascending triangle with the strong horizontal resistance at 1.98 levels. Edwards and Magee in their book Technical Analysis of Stock Trends suggest that a stock should breakout by a min 3% margin above the resistance for a clear chart pattern breakout signal. According to this guideline, a daily close above 2.04 levels will confirm the breakout from the 4 month-long ascending triangle. Possible chart pattern price target stands at 2.35 levels.

ISELECT LIMITED – DAILY SCALE

EN-JAPAN INC (4849.T)

En-Japan inc. is primarily engaged in online job information business. Stock is listed on the Tokyo Stock Exchange. Price chart formed a year-long bullish ascending triangle chart pattern. This chart pattern can also be identified as a symmetrical triangle. Both interpretations suggest higher levels. If we try to connect as many high levels as possible and draw a horizontal boundary it would be at 2,250 levels. This week’s close was at 2,304 levels. A daily close above 2,320 levels will confirm the breakout from the multi-month chart pattern with a possible price target of 3,060.

EN JAPAN – WEEKLY SCALE

YOKOHAMA REITO (2874.T)

YOKOHAMA REITO CO., LTD. is a Japan-based company mainly engaged in the refrigerated warehouse business and the food sales business. The stock is listed on the Tokyo Stock Exchange. Price chart formed a year-long symmetrical triangle with the upper boundary standing at 1,086 levels. Symmetrical triangles can act as a continuation chart pattern as well as a reversal. It is always important to wait for a confirmation with a decisive breakout and with symmetrical triangles it is even more important to wait for the confirmation. A daily close above 1,115 levels will clear the pattern boundary by a 3% margin and will confirm the breakout with a possible chart pattern price target of 1,220.

YOKOHAMA REITO – WEEKLY SCALE

HEALTH SOUTH CORP (HLS)

Health South Corporation is a provider of post acute healthcare services, offering both facility based and home-based post acute services in over 30 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. The stock is listed on the New York Stock Exchange. Price chart formed a 10 month-long rectangle with the strong horizontal boundary standing at 43 levels. Rectangles are usually continuation chart patterns. A daily close above 44 levels will confirm the breakout with a possible price target of 48.55 levels.

HEALTH SOUTH CORP – WEEKLY SCALE

This week there were 2 new chart pattern breakout signals.

#TECHCHARTSALERT

BAIYUNSHAN PHARMACEUTICALS HOLDINGS CO. (0874.HK)

Baiyunshan Pharmaceutical Holdings Company Limited is engaged in the pharmaceutical and healthcare industry. The stock is listed on the Hong Kong Stock Exchange. Price chart formed a 7 month-long rectangle with the strong horizontal resistance standing at 20.80 levels. The daily close above 21.40 levels confirmed the breakout from the multi-month consolidation and a new chart pattern breakout signal is triggered. Even though the weekly close was off its highs this is still considered strong price action. While the rectangle chart pattern price target stands at 23.5 levels, this breakout could be the beginning of a larger scale trend that can push prices towards 26 levels.

BAIYUNSHAN PHARMA – 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 ascending triangle with the upper boundary standing at 6.25 levels. The daily close above 6.40 levels confirmed the breakout from the bullish continuation chart pattern with a possible chart pattern price target of 6.90 levels.

APOLLO INV – WEEKLY SCALE

GLOBAL EQUITY MARKETS-25/02/2017

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.

Doji 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

The Inverted Hammer and Shooting Star look exactly alike, but have different implications based on previous price action. These candlesticks mark potential trend reversals, but require confirmation before action. The Shooting Star is a bearish reversal pattern that forms after an advance and in the star position, hence its name. A Shooting Star can mark a potential trend reversal or resistance level. The candlestick forms when prices gap higher on the open, advance during the session and close well off their highs. The resulting candlestick has a long upper shadow and small black or white body. Bearish confirmation is required after the Shooting Star and can take the form of a gap down or long black candlestick.

ISHARES MSCI EMERGING MARKETS INDEX ETF (EEM)

ISHARES MSCI EMERGING MARKETS INDEX ETF (EEM) has been in a choppy uptrend since the beginning of 2016. Over the past two months the ETF moved higher uninterrupted. This week’s price action reached an important resistance area and formed a Shooting Star on the weekly scale price chart. While the chandlestick chart pattern has a bearish implication, we need further evidence in the following week to call for a reversal. Though, when analyzed with the Doji on the ISHARES MSCI ALL COUNTRIES WORLD INDEX ETF, we can conclude that the buying momentum is possibly weakening in the short-term.

ISHARES MSCI EMERGING MARKETS ETF – WEEKLY SCALE

#TECHCHARTSWATCHLIST

KURA CORP (2695.T)

KURA CORP is a consumer cyclical company listed on the Tokyo Stock Exchange. Price chart of KURA CORP formed a year-long H&S top, a bearish reversal chart pattern. The strong horizontal support stands at 4,560 levels. The support was tested for 5 times over the past year. A daily close below 4,425 levels will confirm the bearish reversal chart pattern with a possible price target of 3,000. The symmetry between the shoulders and also several tests of the horizontal support makes this a text-book H&S top.

KURA CORP – WEEKLY SCALE

BAIYUNSHAN PHARMACEUTICALS HOLDINGS CO. (0874.HK)

Baiyunshan Pharmaceutical Holdings Company Limited is engaged in the pharmaceutical and healthcare industry. The stock is listed on the Hong Kong Stock Exchange. Price chart formed a 7 month-long rectangle with the strong horizontal resistance standing at 20.80 levels. Over the past 7 months, horizontal boundary was tested more than four times and a breakout above the pattern boundary can result in a strong directional move. A daily close above 21.40 will confirm the breakout from the sideways consolidation.

BAIYUNSHAN PHARM – WEEKLY SCALE

CITIC BANK (0998.HK)

CHINA CITIC BANK CORPORATION LIMITED is a commercial bank that is listed on the Hong Kong Stock Exchange. Price chart of the stock formed an 18 month-long H&S bottom with the neckline standing at 5.35 levels. The neckline can also be drawn as an upward sloping line. In either case a daily close above 5.50 will confirm the breakout from the multi-month base formation. H&S bottom chart pattern price target stands at 6.7 levels.

CITIC BANK – WEEKLY SCALE

IDACORP INC. (IDA)

IDACORP, Inc. is a holding company. The Company’s operating subsidiary is Idaho Power Company (Idaho Power), which is an electric utility engaged in the generation, transmission, distribution, sale and purchase of electric energy and capacity. The stock is listed on the NYSE. Price chart formed a 7 month-long H&S continuation chart pattern. The neckline of the H&S continuation chart pattern stands at 82 levels. This week’s price action closed above 82 levels. A daily close above 84 will confirm breakout from the bullish continuation chart pattern with a possible price target of 90.5.

IDACORP – WEEKLY SCALE

AMDOCS LTD. (DOX.O)

Amdocs Limited is a provider of software and services for communications, entertainment and media industry service providers. The stock is listed on the Nasdaq Stock Exchange. Price chart formed a year-long ascending triangle which is considered to be a bullish continuation. Strong horizontal resistance was tested for five times over the past year. Breakout can result in a strong directional move. Horizontal resistance stands at 61.35 levels. A daily close above 62.60 will confirm the breakout with a possible chart pattern price target of 72 levels.

AMDOCS LIMITED – WEEKLY SCALE

#TECHCHARTSALERT

There were two new breakout alerts during the week. Both stocks cleared multi-month rectangle continuation chart patterns.

ORACLE CORP (ORCL.K)

Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Price chart completed a 10 month-long rectangle with the close above 42.85 levels. Strong weekly scale close added to the positive outlook. Possible chart pattern price target stands at 46 levels.

ORACLE CORP – WEEKLY SCALE

SHMOLZ & BICKENBACH AG (STLN.S)

Schmolz & Bickenbach AG, formerly Swiss Steel AG, is a Switzerland-based manufacturer of tool steel and non-corrosive long steel, as well as alloyed and high-alloyed constructional steel. The stock is listed on the Swiss Stock Exchange. Price chart completed a 7 month-long rectangle chart pattern with a daily close above 0.755 levels. Possible rectangle continuation chart pattern price target stands at 0.9 levels.

SCHMOLZ & BICKEN – WEEKLY SCALE

GLOBAL EQUITY MARKETS-18/02/2017

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

#TECHCHARTSWATCHLIST

U.S. BRENT CRUDE OIL FUND (BNO)

Equity traders can look at U.S. Brent Crude Oil Fund (BNO) listed on the NYSE. The Fund seeks the daily changes in percentage terms of net asset value to reflect the daily changes in percentage terms of the spot price of Brent crude oil as measured by the changes in the price of the futures contract on Brent crude oil. Brent Crude Oil is a light crude oil that is ideal for production of gasoline. Price chart of BNO formed a 7 month-long rectangle with the strong resistance standing at 15.85 levels. A daily close above 16.35 levels will confirm the breakout from the continuation chart pattern. Possible price target for the rectangle stands at 19.35 levels.

BNO – WEEKLY SCALE

ISHARES S&P GSCI COMMODITY INDEX (GSG)

Another similar rectangle chart pattern is developing on the iShares S&P GSCI (Commodity Index). Similarity of the chart patterns can be due to the weight of the energy component in the S&P GSCI. The commodity ETF (GSG) is liquid and should be an efficient way to take advantage of a possible breakout in the commodities. Tight consolidation between 15 and 15.95 should end soon resulting in a directional move for the commodity index. Strong horizontal resistance stands at 15.75 levels. A daily close above 16.25 will confirm the breakout from the 7 month-long rectangle chart pattern.

ISHARES S&P GSCI – WEEKLY SCALE

TASER INTERNATIONAL INC. (TASR.O)

TASER International, Inc. is engaged in development, manufacture and sale of conducted electrical weapons (CEWs) designed for use by law enforcement, military, corrections and private security personnel, and by private individuals for personal defense. The Company is also engaged in development of connected wearable on-officer cameras, which utilize its cloud-based digital evidence management solution (Axon solution). TASER is listed on the Nasdaq Stock Exchange. Price chart formed a 5  month-long symmetrical triangle. The upper boundary is acting as resistance at 27.55 levels. A daily close above 28.40 levels will confirm the breakout from the symmetrical triangle with a possible price target of 36 levels. Symmetrical triangles can be identified as continuation as well as reversal chart patterns. For this reason a decisive breakout becomes more important before committing any capital.

TASER INTL – WEEKLY SCALE

VERISIGN INC. (VRSN.O)

VeriSign, Inc. is a provider of domain name registry services and Internet security, enabling Internet navigation for domain names and providing protection for Websites and enterprises around the world (Registry Services). Stock is listed on the Nasdaq Stock Exchange. Price chart of VERISIGN formed a year-long symmetrical triangle. The upper boundary of the sideways consolidation is now acting as resistance at 85.50 levels. A daily close above 88 levels will confirm the breakout from the symmetrical triangle with a possible price target of 107 levels.

VERISIGN – WEEKLY SCALE

BANK OF COMMUNICATIONS CO. (3328.HK)

Bank of Communications Co., Ltd. is mainly engaged in banking and related financial services. Stock is listed on the Hong Kong stock exchange. Price chart formed a multi-month long H&S bottom that can act as a major base reversal. Past few week’s updates drew attention to the developing bullish chart patterns in Hong Kong/China financial sector stocks. Bank of Communications is another financial stock with a bullish technical outlook. Neckline of the H&S bottom stands at 6.35 levels. A daily close above 6.55 will confirm the breakout from the multi-month base formation with a possible price target of 8.0 levels.

BANKCOMM – WEEKLY SCALE

CHINA RESOURCES POWER HOLDINGS CO. (0836.HK)

China Resources Power Holdings Company Limited is a Hong Kong-based investment holding company principally engaged in the investment, development and operation of power plants. It is listed on the Hong Kong Stock Exchange. Price chart of China Resources formed a year-long H&S bottom chart pattern with a downward sloping neckline. The resistance stands at 14.40 levels. A daily close above 14.90 will confirm the breakout from the year-long base formation with a possible price target of 18.60.

CHINA RES POWER – WEEKLY SCALE

CBO TERRITORIA SA (CBOT.PA)

CBO Territoria SA is a France-based company primarily engaged in real estate, construction and development, as well as business and residential property management. It is listed on Paris Stock Exchange. Before we look at the chart development it is important to mention that this is a small-cap stock with limited liquidity. Price chart formed a multi-year rectangle between 3.2 and 3.8 levels. Over the past 3 years the upper boundary of the lengthy consolidation was tested for 9 times. Price chart also formed an 8 month-long ascending triangle with bullish interpretation. Given the overlap of the two major chart patterns, a breakout above 3.8 levels can be significant. A daily close above 3.87 will confirm the breakout from both chart patterns and suggest a price target of 4.4 levels.

CBO TERRITORIA – WEEKLY SCALE

SANLAM (SLMJ.J)

SANLAM LIMITED is a South Africa-based holding company. The Company provides solutions, which include life insurance; general insurance; investment management (including retail savings, asset management and wealth management); credit and structuring, and administration, health and other (such as estate planning, trusts, wills, and lending and health management). Price chart formed a 9 month-long symmetrical triangle with the upper boundary standing at 6,900 levels. This week was the 4th test of the upper boundary. A daily close above 7,100 levels will confirm the breakout with a possible price target of 8,400.

SANLAM – WEEKLY SCALE

#TECHCHARTSALERT

BANK OF CHINA (3988.HK)

Strong price action in the financial sector in Hong Kong/China helped BANK OF CHINA clear the resistance at 3.8 levels. A new chart pattern breakout signal is triggered with the daily close above 3.88 levels. While the weekly close was off the highest level recorded during the week, this was still a strong close on a weekly basis. Chart pattern price target stands at 4.65 levels.

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 price action cleared the strong horizontal resistance and generated a new chart pattern breakout signal. Ascending triangle price target stands at 14 levels.

CHINA MERCHANTS – WEEKLY SCALE

SPDR S&P BIOTECH ETF (XBI)

The Fund seeks to replicate as closely as possible the performance of an index derived from the biotechnology segment of a U.S. total market composite index. The Fund uses a passive management strategy designed to track the total return performance of the S&P Biotechnology Select Industry Index. SPDR S&P BIOTECH ETF is listed on the NYSE. Price chart formed a 4 month-long symmetrical triangle with the upper boundary at 66 levels acting as resistance. A new chart pattern breakout signal is generated after a daily close above 67.35 followed by a strong weekly close. Possible price target stands at 80 levels.

SPDR S&P BIOTECH ETF – WEEKLY SCALE

GLOBAL EQUITY MARKETS-11/02/2017

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

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

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

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

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

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

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

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

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

 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

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

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 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

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