Charts: BRICs Can Fly, but So Can the Dow
Chinese stocks could be set for a strong rally in the wake of better-than-expected economic growth data out of the country, but the Dow hasn't run out of steam yet, Daryl Guppy, CEO of Guppytraders.com, told CNBC Thursday.
"The charts show that BRICs can fly, that's the important thing," Guppy said, referring to the stock markets of Brazil, Russia, India and China.
If the Shanghai Composite Index can break above 3,160 points it could rally to 3,400 points, according to Guppy
The Chinese index is in the apex of a "long-term equilateral triangle," and is a "very bullish chart at this stage," he said.
Meanwhile, the Dow Jones Industrial Average could be due to push toward 11,600 points, Guppy said.
Once the US index gets to that level, investors should expect to see a long period of consolidation, according to Guppy.
"It will be a cap on the long-term uptrend recovery that started in March 2009," he said.
Guppy recommends selling in May and taking profits.
- Watch the video above to see Guppy's views on the FTSE-100, Xetra DAX and the price of oil.
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