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.
With gains of more than 70% so far this year, China is the only global market which has showed a true and powerful “V” shaped recovery, epitomizing the return of investor confidence after a dud year that was 2008.
Japan's benchmark stock index the Nikkei Average fell below the 10,000-level for the first time in three weeks last week, and has since had little success maintaining its upward momentum. From a chartist's point of view, the index will continue to struggle in the near term.
Its tempting to suggest that the 'V'-pattern recovery seen on the Microsoft chart reflects the behaviour of the unpopular Vista operating system and the announcement of its replacement with the newly released Windows 7. According to technical charts, however, that's not the case.
Gold is showing the same fan pattern as appeared on the dollar-yen chart prior to the very powerful breakout in November 2012.
Will dollar strength continue? It's a question most effectively answered with chart analysis of the dollar Index.
The recent rally from near $1.05 remains part of the strong downtrend move towards the $1.00 support target.
The long, steady decline of the Australian dollar – and the Australian economy – continues.
Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia.