Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia. He runs training, analysis and resource workshops for retail and professional financial market traders involved in stocks, CFDs, warrants, derivatives, futures and commodities in China, Malaysia, Singapore and Australia. He has his own trading company, guppytraders.com. He is a special consultant to AxiCorp.
The DOW faces significant resistance barriers which place limits on the upside in this market.
The real threat is that Germany could walk away before being dragged down too and the impact of this is seen on the long term monthly euro chart.
The key question for the Shanghai Index is its ability to successfully test support near 2,140, which was created in December 2011 and January 2012. This is a critical level. Failure of support at 2,140 confirms the continuing strength of the downtrend and sets a new downside target near 2,000.
Earlier this year, the developing chart pattern for the Australian dollar suggested a $1.18 target. This failed to develop, so what went wrong?
Investors have been piling into Treasurys in recent weeks, boosting the dollar. In a sale on July 9, the U.S. Treasury sold three-month bonds at minus 0.005 percent, and six-month bonds at minus 0.006 percent. The Treasury says it's the first time they have registered negative yields. This takes place in the context of a temporary pause in the Euro-zone problems.
Both the Dow and S&P are expected to rise over the next three months, but while the upside in the Dow is limited the S&P could soar.
A combination of chart features paint a bearish picture for Euro Stoxx 50.
As much as many traders think gold should go up the weekly chart of Comex gold suggests there are some serious barriers to a price rise back to $1,750 an ounce or $1,850.
The Dow retreat is part of a new downtrend with initial downside targets near 11,300.
Over time our charts become cluttered with trend lines and other technical indicators, and that can cloud analysis.
The double bottom breakout pattern in the Shanghai Index is developing strongly, Daryl Guppy says.
As U.S. stock benchmarks reach new heights, Daryl Guppy takes a look at the charts on the Dow.
An earlier call on the dollar has not been realized so it is time to take a fresh look at the charts on the greenback, Daryl Guppy says.