Charting Asia with Daryl Guppy


  Tuesday, 1 Sep 2009 | 2:28 AM ET

Blog: A Fast Retreat Will Take AIG to $34

Posted By: Daryl Guppy

Believe the chart or believe your heart? The rapid breakout with AIG from $14 to $30 set up a flag pattern.

The flag pattern is created with a combination of three features. The first is a flagpole. This develops over 1 to 5 days and includes very large price moves. The combined days rocket above the surrounding price activity and are clearly visible on the chart.

The second feature is a bullish flag. This is created when the price retreats from the peak of the flagpole. The retreat can be defined by two parallel down sloping trend lines. The lines do not converge. Converging lines develop a pennant pattern and it is traded differently. The sides of the flag are parallel and slope downwards. This is a bullish flag pattern. The lower corner of the flag should be no lower than 50 percent of the height of the original flagpole.

The third feature is the price breakout above the upper edge of the flag. This breakout is usually very rapid and powerful.

This pattern is used to calculate price targets. The height of the flagpole is measured and this value is projected upwards from the point where price breaks above the upper edge of the flag. This gives an exact price target, which has a high level of reliability. It’s one of my favorite trading patterns.

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  Friday, 21 Aug 2009 | 2:04 AM ET

Shanghai Must Hold Above 2,400 to Avoid the Bear

Posted By: Daryl Guppy
The current retreat has some wondering if this is a new bear market. It’s more an application of the Chinese strategy 19: Pulling the Firewood from Beneath the Cauldron. This cools the market back to a sustainable uptrend. »Read more
  Tuesday, 18 Aug 2009 | 12:28 AM ET

BHP’s Messy Chart Is Only for the Bold: Guppy

Posted By: Daryl Guppy
When a sell-off develops there is a surprising lack of support from investors in miner BHP Billiton. »Read more
  Tuesday, 11 Aug 2009 | 3:32 AM ET

How to Ride the IPO Wave

Posted By: Daryl Guppy
The China State Construction Engineering Corp initial public offering was a fast trek to the stars on the first day of its listing last week. The world's largest IPO this year moved into warp drive for 24 hours and then sputtered to a stop. »Read more
  Tuesday, 4 Aug 2009 | 4:40 AM ET

Nissan Shares Rebound, But Recovery Is Fragile

Posted By: Daryl Guppy
The weekly chart for Nissan shows a powerful trend recovery and a strong rebound from newly created support areas. Is the rebound sustainable or is Nissan merely a 'leaf' blowing in the winds of turmoil facing the auto sector? Let's see what the charts say.  »Read more
  Tuesday, 28 Jul 2009 | 4:35 AM ET

Dow 10,000? Charts Say Yes

Posted By: Daryl Guppy
Now that the 9,000 mark has been passed in the Dow Jones Industrial Average, everyone wants to start counting to 10,000. Do the bulls have enough momentum to charge ahead? From a charting perspective, there are several small cautions with this optimism. »Read more
  Wednesday, 22 Jul 2009 | 8:42 PM ET

McDonald's Ain't No Whopper, Charts Show

Posted By: Daryl Guppy
Companies like McDonald's have proved resilient during the recession, with many believing it would benefit as people adjusted eating habits in response to falling wages and looming unemployment. As the fastfood giant gets ready to unleash quarterly earnings Thursday, will its golden arches lend support to the stock's performance? »Read more
  Thursday, 16 Jul 2009 | 1:52 AM ET

Beware of Banking with the BofA Bear

Posted By: Daryl Guppy
Earnings reports of generally one of the worst kept secrets in the market, and they rarely have the power to change the direction of the trend. They do however, often have the power to accelerate the direction of the existing trend. »Read more
  Tuesday, 7 Jul 2009 | 3:29 AM ET

Long-Term Trends Point to Gold Above $1,000

Posted By: Daryl Guppy
The market is alive with chatter about the weakness of the U.S. dollar, the growing demand to settle trade contracts in yuan and fears of developing U.S. inflation. Is this the time to switch from equity investments into gold? »Read more
  Wednesday, 1 Jul 2009 | 3:33 AM ET

Profit by Playing Follow the Leader

Posted By: Daryl Guppy
Markets don't develop in isolation, neither do they develop in unison. In any related group, there's usually a leader, and a laggard. These inter-market relationships provide good trading opportunities because one index will lead the way in behavior and development. Alert traders watch the leader, then look for a duplication of this behavior in other associated markets. »Read more

About Charting Asia with Daryl Guppy

  • 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.


  • Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia.

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