ITALY MIBTEL & SPAIN IBEX 35

Since July 2012 both indices respected their 50-day moving averages. Over the past 5 months MIBTEL and IBEX 35 rebounded twice from their 50-day moving averages. Given that the latest uptrends formed clear trend channels with their lower boundaries overlapping with the 50-day moving averages, we can conclude that any breakdown below these critical support levels could deepen the short-term corrections. Until we see a violation of the current uptrends, we should expect both indices to move higher with 18,500 levels acting as support for Italy’s MIBTEL and 9,500 levels for Spain’s IBEX 35.

TECH TRADE

Here are some of the charts that I shared on twitter.

Compass Group had a strong breakout. Stock should move higher in the following days. This was a 7 month-long consolidation range.

#FTSE COMPASS GROUP (CPG.L) breaks out of a 7 month-long flat consolidation range. Low volatility set-up. Bullish. pic.twitter.com/EB8YdYSRwK

— Aksel Kibar, CMT (@TechCharts) November 25, 2013

I posted the long-term chart on IP GROUP last week. Stock had a strong breakout today above 160 levels. Looks very bullish.

#FTSE $IPO GROUP clears strong long-term resistance at 160. #TECHTRADE mentioned on Nov22nd. pic.twitter.com/wYCVKIoFsC pic.twitter.com/a1gbVltsEX

— Aksel Kibar, CMT (@TechCharts) November 25, 2013

Both Soy Meal and Cocoa stay strong with further upside potential. These are updated charts related to my earlier blog post.

$ZM_F Soy Meal moves higher after finding support. pic.twitter.com/CrhHd7VA6H now trading up 2% pic.twitter.com/TGHNhMs2bf

— Aksel Kibar, CMT (@TechCharts) November 25, 2013

$CC_F COCOA challenging 2,800 levels. Still bullish. pic.twitter.com/MHT27ca9Ig chart pattern –> double bottom. pic.twitter.com/TrjZ9ysJlm

— Aksel Kibar, CMT (@TechCharts) November 25, 2013

An important chart that should be on everyone’s watch list. Massive long-term base formation could resolve on the upside. This chart will look extremely bullish above 1,675 levels.

One of the most exciting charts on my watchlist. #JAPAN JSP (7942.T) forms massive base formation. Bullish above 1675 pic.twitter.com/RQXxYt5SEz

— Aksel Kibar, CMT (@TechCharts) November 25, 2013

NIKKEI 225 INDEX

16,000 level becomes more important for Japan’s Nikkei 225 index as the benchmark reaches the decade-long trend resistance. In May 2013, Nikkei 225 had a spike and tested the long-term resistance area. Sharp pullback to the 200-day average followed right after the strong rally. Now, the index is trying to reach the same trend resistance.  To be more bullish in this overextended market we should wait for confirmation and this confirmation should come with a decisive break above long-term trend resistance at 16,000 levels. Before that happens we should expect more consolidation between 13,500 and 16,000.

COCOA & SOY MEAL

I analyzed Cocoa prices in October and drew attention to the strong horizontal resistance at 2,800 levels. That study needs an update now as the price is challenging the strong resistance for a possible breakout. Higher prices could be seen in the following weeks once this base formation completes with a similar breakout that took place in the beginning of 2007.

Soy Meal is another commodity that could move higher in the following weeks as the price finds support between 380 and 390 for the 5th time over the past two years. Last one year’s trading range has been between 380 and 550. A buy signal on weekly MACD, similar to earlier reversals, will confirm the bullish outlook for the short/medium-term. Price could target 550 levels once again.

GBP/CHF

GBP is gaining strength against major currencies. This is a bullish chart pattern that has been forming over the past year on GBP/CHF. Cross rate tested 1.48 levels for three times over the past year and a break above this resistance could send the cross rate towards 1.51-1.52 area resulting in further GBP strength. Chart pattern can be classified as a double bottom or cup with handle . In both cases a breakout on the upside will generate a bullish signal for GBP in the short/medium-term.