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.
Chinese stocks stormed higher in recent months, but charts indicate they may face a period of consolidation.
Gold fell on concerns that a strong dollar and improving economy could damp demand, and silver charts suggest that bullion may not regain upward momentum soon.
Charts suggest that the downtrend in the euro/dollar is firm ahead of the European Central Bank's (ECB) policy meeting on Thursday.
The Dow Jones Industrial Average posted its largest annual gain last year and while momentum has slowed, investors are questioning whether the rise has run its course.
Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia.