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Technical Analysis – JP 225 index pins new multi-year high; bearish divergence detected

Posted on September 15, 2021 at 9:49 am GMT

Japan’s 225 stock index (cash) surpassed February’s high to top at 30,804 on Tuesday – the highest since the 1990 bubble levels – before closing a bit lower. While the index has corrected the minor pullback below the 20-period simple moving average (SMA) and is currently set to rechallenge the 30,545 – 30,600 barrier, the negative trajectory in the RSI and the MACD continues to conflict the latest higher highs in the market, warning of a bearish divergence phenomenon. In other words, the [..]

Technical Analysis – US 500 index plays in a déjà vu episode; eyes on 4,428

Posted on September 15, 2021 at 8:02 am GMT

The US 500 stock index (cash) ran down to meet familiar support lines on Tuesday, represented by the blue Kijun-sen line and the 50-day simple moving average (SMA), after an unsuccessful attempt to return above the 20-day SMA at 4,491. The negative correction could be a déjà vu of the short-lived downfalls registered in the past six months as the long-term uptrend shows no sign of reversing. Adding to the encouraging signals is the red Tenkan-sen line which continues to fluctuate above [..]

Technical Analysis – US 30 index struggles to push over mid-Bollinger band

Posted on September 10, 2021 at 2:01 pm GMT

The US 30 stock index (Cash) has dived back below the mid-Bollinger band at 35,031, with its odds looking very slim for now in testing the resistance barricade reinforced by the simple moving averages (SMAs). As things stand, the converging SMAs are promoting a slight neutral-to-bearish tilt. The short-term oscillators are favouring the downside. The MACD’s climb is subsiding in the bearish region and it is heading down towards its red trigger line, while the stochastic oscillator is about to [..]

Technical Analysis – US 500 index unwinds September’s gains

Posted on September 8, 2021 at 11:32 am GMT

The US 500 stock index (cash) flipped September’s advance, sliding below the 4,500 mark, though only marginally, before inching back above this level. Downside corrections emerging after fresh record highs are common and short-lived, especially if those are not hindering the original upward trajectory in the market as in the case of the US 500 index. The negative cross between the red Tenkan-sen and Kijun-sen lines and the falling MACD, which has slipped into the bearish territory, foresee more weakness in the [..]

Technical Analysis – JP 225 index skyrockets to 5-month high

Posted on September 7, 2021 at 10:11 am GMT

Japan’s 225 stock index (cash) had an extraordinary rally last week, rising at the fastest pace in more than three years after Prime minister Suga’s resignation to hit a five-month high of 30,190 on Monday. The bulk of gains emerged following the close above the resistance trendline drawn from the top of 30,711, with the price consequently invalidating the downward pattern above the previous high of 29,974. The RSI and the Stochastics suggest that the latest bounce is overstretched and it’s time [..]

Technical Analysis – US 500 index doubles March 2020 lows as record rally continues

Posted on August 24, 2021 at 3:06 pm GMT

The US 500 stock index (cash) keeps trading in a perfect uptrend in the daily chart, marking highs after highs for the fifth consecutive month, having almost doubled its price from the March 2020 lows to a fresh record of 4,495 on Tuesday. Technically, the upward pattern shows no signs of abating as the upward slope in the simple moving averages is defending the positive trend. Therefore, the rally could chase fresh records in the uncharted territory in the short term, [..]

Technical Analysis – JP 225 index runs out of bullish fuel near 200-SMA

Posted on August 13, 2021 at 1:27 pm GMT

Japan’s 225 stock index (cash) hit a wall just around the 200-day simple moving average (SMA) on Thursday, unable to extend its upside correction towards the tough resistance trendline, and hence making a test around the supportive trendline at 27,672 possible. A bearish bias has yet to be confirmed, as the RSI remains above its 50 neutral mark, though marginally. The Stochastics are still above their 80 overbought level despite the recent weakness, while the MACD keeps strengthening towards the [..]

Technical Analysis – GER 30 index claims 16,000 target for first time

Posted on August 13, 2021 at 11:13 am GMT

The German 30 index (cash) is following US indices higher but at a faster pace recently, unlocking a new record high just shy above the 16,000 psychological mark on Friday. Following the three-day-long bullish strike, a downside correction towards the previous resistance region of 15,800, which could adopt a supportive role now, could be reasonable, but the momentum indicators have yet to confirm overbought conditions. The RSI is marking new highs above a previous resistance area and has still some [..]

Technical Analysis – UK 100 index pulls back from fresh highs, but key support holds

Posted on August 12, 2021 at 10:20 am GMT

The UK 100 stock index (cash) rallied above June’s highs to print a new 1 ½-year high at 7,233 on Wednesday before opening with a small negative gap slightly lower on Thursday. While the recent downfall in the RSI and the slowdown in the MACD is pressing the bias to the bearish side on the four-hour chart, the bulls may not give up the game if the red Tenkan-sen line manages once again to keep a firm footing under the [..]

Technical Analysis – US 500 index stretches to fresh record high of 4,415

Posted on July 26, 2021 at 1:37 pm GMT

The US 500 stock index (Cash) is ticking back up after a minor pullback from its recently reached all-time high of 4,415. The positively charged 100- and 200-period simple moving averages (SMAs), along with the recouped elevation in the 50-period SMA’s slope, are endorsing upside momentum. The bullish Ichimoku lines are reflecting a pause in positive price action, while the short-term oscillators are transmitting mixed signals in directional impetus. The MACD far above zero is dwindling towards its red trigger [..]

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