Archive for the ‘Far-East Markets’ Category
Japan’s Upswing May End Soon
Japan’s stock market appears to be at a decisive point, one that will determine whether 3-month up-cycle that has remained in place will continue. Notes, technical indicators are giving bearish signals, with Nikkei having fallen below its 52-week moving average and 100-day advance/decline ratio dipping below 95%, pointing to possibility that Japanese shares could remain weak through September. In Today’s trading, the Nikkei Index dipped down to 9378.23, down below its’ previous inter-day 2010 low. This is a critical technical development to watch as going forward with Japanese equity investment.
New Prime Minister Naoto Kan will be judged depending on whether he can rein in finances and promote economic growth, promises unfulfilled by predecessor Yukio Hatoyama. Both Nikkei and Topix both lost over 7.0% during Hatoyama government. Investors see Kan as advocate for weaker yen, often viewed as positive for Japan’s export-oriented market. It would hardly be surprising if Kan envisioned a scenario in which a weaker yen pushed stock prices higher. But analysts say equity market recovery is unlikely unless Kan implements credible policies to lift the broader economy.
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Centennial For Australia
The Centennial Company of Australia is indeed a cause for celebration. Here at last is a really good looking start of an upwards trend. I say so because we can see this proven through some very important technical parameters. First off, the new brown upwards sloping line on the Daily Chart below indicates to us a fresh trend developing. Then, check out the vertical line in blue showing the day that all 3 Volume Weighted Moving Averages crossed each other and lined up in a buying signal; that is, lowest the fastest (13 day), and in the middle the medium range (21 day), and above the longer and slower 34 day VWMA.
The Directional Movement Indicator’s pink line has moved below the blue line recently and convincingly, and it is already below the orange line. This shows us that the DMI is signaling a buy position. In addition, the Price Oscillator is at an extremely low point indicating a relatively low price level as measured over the average price levels in the last 21 days. This provides us with a good entry point at a cheap price relative to this stock and to the time frame. Check out the Daily Chart to see what I mean.
This is the way the Chart looks:
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Meet Jiao Yun, a Shanghai Favorite
This company, by all means a Shanghai Stock Exchange big volume market leader, has been on a long term upwards trend for a year and a half. This is shown on the Weekly Chart below. As is seen, the chart shows the equity going down the last week and hitting the brown trendline. On an upswinging stock this usually represents a good buying opportunity.
This is the way the Weekly Chart looks:
The closing Daily Quote was at the weekly (and monthly) upwards trendlines. Because of this and all of the above there is a good chance for this stock to go up soon. And the upside down hyperbolic rate of fall of the daily prices is indicative of a right side up hyperbole of these prices as depicted on the chart below. This remains a daily chart short term investment, especially since fear is greater than greed and now that the greed emotions set in on this equity, the upwards daily-level rise will be with a smaller rate of change upwards.
This is the way the Daily Chart looks:
