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. He is a special consultant to AxiCorp.
The Shanghai Composite Index made a new low near 1,999 on September 26 and then developed a good rally rebound. There is a high probability the rally will continue after the Golden week holiday that ends Friday.
Expectations of change or decisive action to deal with growing euro zone debt problems result in short-lived rallies for the single currency followed by a resumption of the long-term downtrend.
The Japanese central bank’s defense of dollar/yen at 76 as a support level has been successful. Upside resistance is created by two features.
The NYMEX oil market is attractive for traders. The primary danger for trading this market is the volatility of price retreats from resistance levels. .
The DOW faces significant resistance barriers which place limits on the upside in this market.
The real threat is that Germany could walk away before being dragged down too and the impact of this is seen on the long term monthly euro chart.