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.
Charts suggest the PBoC's move to cut rates will further boost an already-strong uptrend in the Shanghai Composite index.
Surprise easing from the Bank of Japan (BOJ) at the end of October fueled gains in the Nikkei, but charts indicate further upside may be limited.
Charts suggest a new upside target for the dollar-yen after fresh stimulus measures from the BOJ pushed the pair to seven-year highs.
A stronger U.S. dollar pushed gold within range of a fresh four-year low last week, and charts suggest further downside is likely.
Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia.