Tech Musings :- Global Equity Index

The first chart is of DAX.  The index looks precariously close to breaking the long term trend which started in September 2011. Any weekly close below 7600 will see sharp fall.

The second chart is of Dow index. As we can see Dow has broken the channel and long term support for Dow is now at around 14000. Expect a sharp correction in Dow to 14000.
 
 

The third chart is a weekly chart of Hangseng Index. We can see that HSI has already broken below the trend line and is correcting sharply.

The fourth chart is of Korean Stock Index. KOSPI is forming a big head and shoulder pattern and any break below 1700 levels will see very sharp falls.
 

Fifth chart is of Nikkei. My call on Nikkei was almost prophetic. Readers may remember that on 22^nd may 2013 I wrote, “If we look at the given chart we can see that the rally in Nikkei looks over extended and upside in Nikkei from here is very limited. I think Nikkei won’t go above 16500 levels in near term without any meaningful correction.”  

Nikkei made a top of 15919 on 23^rd may just a day after my call and then crashed 12445 which is almost a 20% correction form the top.  If we look at given chart of Nikkei we can see that it had completed 38.2% retracement at 12645 levels. Since global markets are looking week, Nikkei may fall further to 11800 levels.

 

In my same post I gave a buy call on Shangai composite with a stop loss of 2180. The index closed yesterday at 2074 levels and hit my stop loss. If we look at the given chart of Shanghai we can see that it is near to its long term trend line. Unless Shangahi breaks below 1950 levels on weekly closing basis further correction shall be ruled out. In fact it may become attractive buy at 2000 – 2050 range with a stop loss of 1920 on weekly closing basis.

 

The next chart is of Taiwan stock exchange. As we can see the index has broken long term trend line support and may fall to 7200 levels.

 

The last chart is UK FTSE 100 index. We can see that it is trading very near to its long term support of 6000. Any weekly closing below 6000 levels may see correction. 

In the same post on 22^nd may 2013  I gave a buy call on gold at 1340 – 1360 levels with a stop loss of 1290 and a target of 1500. Gold yesterday made a low of 1270 and has moved up from there. If you look at current chart of gold you can see that gold has done exactly 38.2% retracement of the entire rise from 300 USD an ounce to 1921 USD an ounce.

Gold has come precariously close to breaking my stoploss but risk reward point of view it also gives a very interesting buying opportunity. Readers may go long on gold at 1270 – 1290 levels with a stop of 1240 and target of 1400 + in next few months. 

I am not long term bear on gold but Gold may fall from here towards 1000 – 1200 range before it finally bounces back. Right now Gold has corrected very sharply from 1800 levels without any meaningful pull backs. I think pull back are imminent. Therefore current price point presents a compelling buying opportunity form risk reward perspective.