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Charting Asia with Daryl Guppy

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  Tuesday, 26 Aug 2008 | 12:02 AM ET

Gold Loses Its Luster

Posted By: Daryl Guppy

In one of my past incarnations, I was -- I kid you not -- a gold miner. Yes, I actually worked underground in an Australian goldmine. Since then I have found it much easier, and much more profitable, to mine for gold in the financial markets. Here, gold is a mother lode of opportunity, as indicated by the weekly NYMEX chart.

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  Tuesday, 5 Aug 2008 | 4:20 AM ET

The KLCI's Long Bear Hug

Posted By: Daryl Guppy

Malaysia's KLSE Composite Index (KLCI) has tracked its regional peers downwards to lose more than 20 percent of its value this year alone. Amid the gloomy sentiment and political upsets facing the market, some of our readers have written in requesting for analysis on the index. Charting Asia finds out if there is light at the end of the tunnel.

The KLCI is in the grip of a long bear hug. This is most easily seen on the weekly index chart. This puts daily price activity into a wider context. The dominant feature is the long term head and shoulder pattern . This is a bearish pattern and is useful in two ways.

First it confirms the bearish nature of the market and this directs our attention to downside support levels. Second, the pattern is used to establish potential downside target levels. These pattern projections have a high level of reliability as seen with the DOW and NASDAQ patterns.

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  Tuesday, 19 Aug 2008 | 1:41 AM ET

Lenovo Plays the Olympics

Posted By: Daryl Guppy

Lenovo is banking on the Beijing Olympics to promote its brand on the global stage. But China's largest PC-maker, the only local worldwide sponsor of the Games, has seen its shares fall nearly 40 percent since hitting a peak in November 2007. Will the computer maker's Olympic efforts help it score gold? Let's hit the charts to find out.

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  Tuesday, 12 Aug 2008 | 12:49 AM ET

Can Li Ning Keep Its Olympic Glow?

Posted By: Daryl Guppy

With a very minimal involvement in these games, Li Ning Co. (HK; 2331) has all of a sudden come away as a big winner, thanks to its namesake and chairman lighting the torch at Friday's Beijing Olympics Opening Ceremony.

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  Tuesday, 29 Jul 2008 | 1:00 AM ET

Planning the Parity Party Down Under

Posted By: Daryl Guppy

In April of 2001, Australians could do little but stay at home with the Australian dollar trading at 48 U.S. cents. Fast forward 7 years and the weakness of the Australian dollar is a distant memory as the Aussie magic pushes towards parity with the U.S. dollar.

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  Tuesday, 22 Jul 2008 | 3:18 AM ET

HSBC's Relative Love Affair

Posted By: Daryl Guppy

It's been a rough year for financial counters, with banks hard hit by the fallout out of the subprime crisis and the subsequent credit crunch. Investors are fearful and no one seems able to say for sure when the worst will be over.

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  Tuesday, 15 Jul 2008 | 1:34 AM ET

The Dow's Financial Root Canal

Posted By: Daryl Guppy

Asian stocks fell to a two-year low Tuesday with most markets down at least 2 percent if not more. Investor confidence in the region's financial sector has waned due to high inflation, a stricter lending environment and massive volatility from overseas markets, especially the U.S..

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  Tuesday, 8 Jul 2008 | 1:05 AM ET

Bouncing Along

Posted By: Daryl Guppy

Rubber has an elastic relationship with oil. As the price of oil increases the cost of producing synthetic rubber increases. Producers switch from synthetic rubber to natural rubber and this pushes up the price of natural rubber which is most easily tracked using the Tokyo Commodities RUCC contract.

The price of oil has increased by more than 100 percent in the past year, while the price of rubber has jumped by about 50 percent. The relationship between the two commodities is erratic and no longer sell correlated. Analysis of the oil market was once used as a proxy for analysis of the rubber market. Now the rubber market is analyzed on its own merits, with its own distinctive patterns of price behavior.

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  Tuesday, 1 Jul 2008 | 12:56 AM ET

Reliance and The Three Bears

Posted By: Daryl Guppy

We've received lots of feedback from readers over the past few months. We love reading your emails so the keep them coming! We've also had many specific requests to chart various markets and companies. High on the list is India's Reliance Industries (IN:REL). So by popular request, Charting Asia presents the tale of Reliance and The Three Bears.

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  Tuesday, 24 Jun 2008 | 1:25 AM ET

Sinopec: Will Subsidy Reductions Fuel a Rally?

Posted By: Daryl Guppy

In the animated film, Kung Fu Panda, Master Oogway, the old wise tortoise tells Dustin Hoffman's red panda character Shifu, "There are no accidents". The best technical analysts will reach a similar conclusion when a chart like Hong Kong-listed Sinopec, flashes on the screen.

Keep in mind, the question to be addressed is which is more important in determining market behavior and market pricing: Fair value based on fundamentals, or market value created by psychological trading behavior?

In the case of Sinopec , its chart is dominated by trading bands with well defined levels of hope, of fear and investing glory.

In theory, the Chinese Government's sudden reduction of fuel subsidies last week, should have had a substantial impact on Sinopec. In reality, the chart shows significant constraints on trading activity. Hope is limited, and trading glory is a well defined objective.

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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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