Well... Supported (2010-08-13 HSI analysis)

It seems that Hang Seng Index does not have to drop till the red line for support. The cyan pitchfork as well as the 61.8% fibs level are pretty supportive too. Bad news are almost digested and the correction ends. If HSI does not breakdown till next Monday close, it would be good time to long some stocks.

Bearish or Correction? (2010-08-12 DJI analysis)

So everyone could easily draw a breakdown chart for Dow Jones Industrial Index and S&P 500 Index, but does it indicate a big plunge would follow? or is it just a correct? Personally, there is still some hope for bullish continuation there.

We can see that 50SMA is moving towards 250SMA from underneath. Past experience tells us that whenever 50SMA penetrates through 250SMA from the lower level, the market would still continue its bullish trend. This may be a good signal to wait.

Good luck and don't panic.

Slow drop (2010-08-11 EUR analysis)

Euro in 4-H chart had been beautifully supported by the pitchfork. However, breaking the red up-trend line, the 16-nation currency might not keep its original bullish condition and have a big chance to start falling. It would be a slow drop along the fork but not a volatile one.

MACD and EMA touches each other. Keep an eye on it and see whether they will cross each other. If they cross, a short-term rise should be following.

Breakout led by Results Announcement? (2010-08-10 Tencent analysis)

One of the leading internet companies in Mainland China Tencent (0700.HK) would be announcing its results tomorrow. Thanks to the rocketing market of online games, mobile phone games, as well as the profits led by ShangHai world Expo, CLSA estimated that the profits in 2nd Quarter would be around 1.8B (RMB). This may give a hard push to the price upwards. Technically, let's look at the daily chart.

Obviously, 250-day SMA is currently touching 50-day SMA. If the price could be pushed upwards tomorrow and 50SMA successfully crosses 250SMA, this would be a good bullish sign to long Tencent.

Also, the price now is testing 61.8% fibs level. Such a hard resistance can only break due to large news such as results announcement tomorrow.

Let's move on to a longer timeframe.



The previous candlesticks were either bullish rejections or big white sticks. The stock is obviously in up-trend. However, it is testing its long-term resistance (red-line) too.

Both daily and weekly chart shows that the price is facing a very big resistance now. Once it breaks, the momentum upwards would be large.

Possible Breakout Setup (2010-08-09 USDJPY analysis)

Tomorrow Bank of Japan will announce its interest rate decision and JPY would definitely have a little fluctuation.



So would the announcement help JPY break the red downtrend channel? MACD and EMA seem to give a hint on it too. It looks likely that a breakout would occur. This might be a possible breakout set-up for traders.

Important Economic Data this week

Important Economic Data this week

10-Aug (Tue)
JPY Bank of Japan Rate Decision
USD Federal Open Market Committee Rate Decision

11-Aug (Wed)
GBP Claimant Count Rate (JUL)
GBP Jobless Claims Change (JUL)
GBP Bank of England Quarterly Inflation Report (AUG 11)

12-Aug (Thur)
AUD Employment Change and Unemployement Rate (JUL)

13-Aug (Fri)
EUR GDP (2Q)
USD Advance Retail Sales (JUL)
USD CPI (JUL)

2 Time Frames Analysis (2010-08-07 DJI analysis)

With a fall of 131,000 in US employment in July, while the estimation was a decline of 65,000, DJIA opened low yesterday. You might question whether the markets would continue being bullish or reverse. Technical Analysis on DJI gives us clues.



Let's see the Daily chart of DJI . It was beautifully supported by the uptrend line and a bullish rejection was formed last Friday, showing a strong bullish view by investors. MACD and EMA touched again, however, we could see that they had touched twice before but actually they didn't cross. This is likely to happen again this time.

The hourly chart further enhances.

The red line is the same as that in daily chart. We can see that MACD and EMA are at the level around 0, and a bullish cross appeared. The index is going to reach 10702 again, but to break this resistance, a higher volume has to show up to give it a hard push. I believe it will still be in bullish in the next few days.