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.
After a terrible 2008, Indian stock markets came roaring back to life in 2009. But as we enter 2010, with stocks becoming more expensive, and fears and inflation and asset bubbles forming in parts of the global economy, where are India markets headed?
Toyota's stock is stalled at the traffic lights and has been for many months. It's convenient to attribute the sluggish performance to the automaker's recent recall woes, but a closer look at the stock's technicals will show the downtrend's been in place for sometime now, although the stock did manage to break out from the descent somewhat last year to take on a prolonged sideways trading pattern.
While Nintendo's earnings have held up relatively well during the financial crisis, the same canno be said about its shares, which has lost a sixth of their value last year, compared to the overall tech sector which staged a spectacular recovery over the same period. So what happened?
If you Google ‘cause and effect’ you come up with a list of millions. It’s a complicated subject, and the relationship between the cause and effect on the Google price chart is just as complicated. It's convenient to associate the recent price pullback with Google’s current dispute with China. However, a closer look at its stock chart would reveal other factors at play.
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.
A drop in commodity prices and waning demand from China pushed the Australian dollar to fresh lows, and now the currency faces a test of support.
The rapid collapse in Nymex oil prices caught many investors offguard, and the charts suggest worst may not be over.
Analysts worry that the S&P 500 will collapse following the index's 14.5% rise in 2014, but patterns suggest otherwise.
Does technical analysis work, or is it akin to reading tea leaves?
Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia.