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.
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.
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.