If you were curious how NIKKEI225, the Japanese stock index, looks like on a monthly chart, you would have been amazed. From my point of view its chart is like a technical analysis work of art. Chart: NIKKEI225, Monthly For the past 21 years the down trend has respected the same trend line. The 14 months RSI has given good divergences and overbought/oversold signals. During 1995 and 2000 we can see 2 equal corrective moves and a 4 year Inverted Head and Shoulders between august 2001 … [Read more...]
Stock Market Indices
A stock index is a way to measure the value of a section from a stock market, the absolute value of an index is generated from computed prices of the companies stocks that are included.
Usually investors use indices to describe and evaluate the potential or the possible return of the market. Indices trading is apart of the investing culture, and has attracted many followers after the financial crisis in 2007 due to the high volatility in the market
We follow major indices from important stock markets like Nikkei, Dollar Index, S&P, DAX or Dow Jones.
This is an update on our analysis DAX Future Evolution Based On German Economic Data. The world economy has deteriorated during the past weeks, especially for Europe. Many of the macroeconomic indicators were published under market expectation, plus the problem with Cyprus triggered a risk aversion. The confidence towards the bank sector has dropped rapidly on the conditions imposed by EU for a bailout to Cyprus. A deposit larger than 100.000 euros is now at risk, because in certain … [Read more...]
Interval: Daily This is an update of the last analysis on Dollar Index Even though the fundamentals are still favoring the dollar, we can see that the technical analysis is given more and more bearish signals. Price of the index got into the PRZ(point D) of the Bearish Bat harmonic and fell back to the local support at 82.32. If today's trading session will close under this level then we can a expect a continuation of the fall to 81.42 where the first target of the harmonic pattern … [Read more...]
In mid-February the leading indicators (ZEW Economic Sentiment, Flash Manufacturing PMI and Ifo Business Climate) came in a positive direction, especially ZEW and IFO which have exceeded the expectations. In this situation we would have expected some good economic data releases for the next period. Well it wasn't quite like that, because the economic data posted for Germany was pretty low. After a final q/q GDP of -0.6%, as expected and final CPI m/m of 0.6%, as expected, only the retail … [Read more...]
Interval: Daily Looking at a daily chart, we can see a straight up move that started at the end of January. The price went through the 81.42 key level and after that retested it. Now it is on an open road to a Bearish Bat PRZ that is situated between 83.00 and 83.48. This up move that is in place right now it is sustained also by the economic data that came from the United States. Yesterday the ISM Non-Manufacturing PMI was published at 56.0, over the estimates of 55.0. Today the ADP … [Read more...]
Interval: Daily The Americans got back their optimism in the past weeks, we can see this in the uptrend on the Dow Jones Industrial, one of the most important indexes from United States. This growth is also sustained by the economic data from USA, for example we can take the ISM Manufacturing PMI which was published for the third month over expectations and in the positive territory. Getting back to the chart we will observe a price pattern formation called Broadening Formation (known … [Read more...]