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.
The current rally is testing the support/resistance level near 2,300. A move above this level is bullish. A retreat away from this level is bearish and confirms the downtrend remains very strong.
There is continued down pressure on the Euro ST 50. The secular trend is down. Short term opportunities exist to trade rallies and retreats in the context of this downtrend. A retest failure of support near 1,980 has a downside support target near 1,800.
The Shanghai Index's long-term target is near 2,760.
The recent pullback towards 1.10 suggests that bearish pressure is building on the euro-dollar.
The yellow metal's dramatic fall from $1,340 to below $1,260 is a break-and-enter theft on a grand scale.
The outlook for oil prices remains bullish, both on the chart and in the economy.
More people are dabbling in technical analysis without really understanding what is involved.
Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia.