Nikkei has finally broken out of consolidation
pattern it was in since April 2012. Nikkei is now firmly entrenched in an
uptrend and the first target for Nikkei is around 11500 – 12500 with potential
to move higher as mentioned in my post on 16th November 2012.
 |
| Nikkei Weekly chart |
Second chart is weekly chart on Shanghai. As
reader may remember I gave a buy call on Shanghai on 24th November when Shanghai
composite was trading at 2017 with a stop loss of 1980. Shanghai never made a
closing below 1980 but made an intraday low of 1949 due to which I felt that it
may go lower and exited my buy call.
Although the call was spot on, my impatience
got the better out of me. Technically the stop loss should have triggered only
when Shanghai Composite closed below 1980 on weekly closing basis, but the intraday
fall was so severe that it shook me out of my trade. (Even after spending seven
years observing the market, it is still so difficult to control emotions of
greed and fear.)
 |
| Shanghai Weekly chart |
The last chart is yearly chart of Shanghai composite.
Readers can see that this year it has formed a doji and had taken support at
trend line. It is entirely possible that next year will be a morning star and
if Shanghai do not break below the recent lows than we may be up for a big
upmove next year. Investors and traders can buy pull back with stop loss of
1920 on weekly closing basis.
 |
| Shanghai Yearly chart |
No comments:
Post a Comment