Monday, 18 April 2011

FTSE Xinhua China Breakout trade?

I am seeing a potential Ascending triangle pattern forming here in the FTSE Xinhua China Futures. A break above 10,200 should be the bullish trigger. This is in line with the big picture bullish scenario I have been following for a while. Monitor this area closely:

FTSE Xinhua China April 15mins:

FTSE Xinhua China April 60mins:
This triangle and consolidation pattern is forming above previous resistance. Consolidation at the top end of the range is bullish

SPI Ending Wedge

Having a great day on the SPI today. I just wanted to update the Ending Wedge pattern I posted this morning. The key to this pattern is the 3 wave push into the trendline with bullish momentum divergences. Indeed, the momentum indicator made 3 higher lows despite price making lower lows. As ever, waiting for confirmation is key and when I saw a strong 5min reversal candle off the low with follow through, I got long at 63 average. In the short term the resistance levels are 4900/4905.

SPI 5mins:

These patterns appear time and time again across timeframes so learn this setup. 


Asian Morning Thoughts

Morning All,

US markets closed positively on Friday building on the previous days gains. I wrote a bullish piece on Thursday after the close and I don't see any reason to question this for now. NYSE Advancing issues closed at 2058, the highest reading since the beginning of April. Volume was also solid at 1.04bln shares. The key technical level is 1320 in the Eminis and breaks above here confirm a solid low in place.

Emini 60mins:
This is a strong basing pattern under 1320. I am adding to longs above here.

Emini 60mins
Price has now closed out of the downward flag pattern I was showing on Friday. I believe this is a strong inverse Head and shoulders pattern forming.

The XJO and SPI remain in a short term downtrend since topping at the 5000 level. Price struggled at 4900/4905 on Friday and this is my short term marker for a possible trend change back up. There is a possible Ending Wedge pattern I am monitoring but this needs a solid open this morning to confirm. The market is indicated at 4879 and the scenarios I am following today:

i) Look for a early bearish reversal candle out of the higher time frame moving averages at 85 to 90 . Get short with a stop above the high of this candle.
ii) Look for breakout trades above 4905.
iii) Short on breaks of 4860 looking for a retrace down to 4800 level.

SPI 5mins:

Other patterns I am following in the region today:

MSCI Taiwan April 15mins:
Double Bottom Trade setup

Nifty April 15mins:
Looking to get long today out of this 61.8 retrace level. Price exploded higher on Wednesday and thus we should be looking to buy the first pullback. Here it is.5800 to 5825 are the key support levels

BSE Daily:
The Bombay Sensitive put in a very strong closing candle out of the flag pattern. We need to join this price action with stops below the low of this candle