One key market that has recently reached a technical turning point is the US 10 year bond yield. The expectation is for a further increase in yields to occur, with the minimum upside technical target located at 2.92%. As highlighted by the chart below, it had previously generated a technical... Show More
The Eurostoxx50 index originally generated a technical buy signal at 2885 on 11/7/16 which was identified as the technical turning point. This was followed by a secondary technical buy signal generated at 3029 on 9/8/16. The index has now completed a technical top formation / closed below key support which... Show More
The Nasdaq Composite index has completed a technical top formation / closed below key support which has generated a technical sell signal. The index technical outlook has turned negative. The minimum downside target is located at 5810. Show More
The Brent price originally generated a technical sell signal at US$53.06 on 8/3/17. This was identified as the (negative) technical turning point. The decline last night has resulted in further major support being broken which has generated a new technical sell signal. The downside technical price target is located at... Show More
The key European indices previously generated technical buy signals in a cluster in mid-July 2016, which identified the technical turning point in the region, and flagged Europe as a positive theme as detailed in a Wire at the time https://www.livewiremarkets.com/wires/technicals-key-european-index-buy-signals-generated. Show More
SPOT GOLD PRICE (US$1278) - a New York close above US$1290 if it occurs would target a rally to US$1340. The spot gold price originally generated a technical sell signal at US$1321 on 25/8/16. The gold price subsequently generated a re-entry technical buy signal at US$1216 on 2/2/17. The minimum... Show More
The Dalian iron ore futures originally completed a technical top formation / closed below key support on 27/3/17 at 566 thereby generating a technical sell signal and resulting in the technicals turning negative. The subsequent sell off resulted in the initial downside target @ 516 and secondary sell signal target... Show More
The Dalian iron ore futures completed a technical top formation / closed below key support on 27/3/17 at 566 thereby generating a technical sell signal and resulting in the technicals turning negative. The subsequent sell off resulted in the initial downside target @ 516 and secondary sell signal target @... Show More
The Dow Jones originally generated a technical sell signal at 20,668 on 21/3/17. Show More
The Shanghai Composite Index originally generated a technical buy signal at 2955 on 18/3/16. At that point the index technical outlook turned positive. Show More
I agree with you Mathan. By far the most common way my technical analysis model is used is in combination with fundamental analysis, rather than in isolation. The technicals are a "timing tool" and useful in identifying turning points in momentum / sentiment (which is really what technicals are analysing), particularly when it has moved to an extreme. There are times when fundamentals are not the key driver of share price or market performance, and it is in those situations that technicals are particularly useful. By way of illustration of how the technicals have been effective on the "timing"side, during last year major market turning points were identified - the upward reversal point in US bond yields in August 2016 (at a then yield of 1.58%) and the buy signals on the key European stockmarkets in mid-July 2016.
It has been interesting to note that in mid-August a cluster of gold stocks generated technical sell signals. Commonly, stock technicals lead the related commodity.
The close above 5036, as detailed in my Wire as the key technical level, has activated the technical buy signal.
Day to day movements won’t alter the trend after a signal is generated i.e Just as there is very specific criteria that needs to met to generate a technical signal, very specific criteria needs to be me to invalidate a signal. In the case of brent, a downside break of a key support level would be required to negate the current buy signal.
QMG clients were provided with an early technical alert on 27/4/15, when the AUD was trading at 0.7820, that the potential had emerged for a trend change in the AUD/USD. The break above the 0.7843 resistance barrier during the next trading session satisfied the criteria and activated a technical buy, and it was at that point the AUD technical trend turned positive.
CBA is the major bank stock to have generated a sell signal
As detailed on 9/12/14,WTI oil originally generated a technical sell signal at US$90.69 on 23/9/14. Most recently nominated downside target located at US$60 (detailed in 9/12/14 Wire). If a close below this level occurs, major subsequent support would then be located in the US$56 - 58 band.
As detailed on 9/12/13, WTI oil originally generated technical sell signal @US$90.69 on 23/9/14. Most recently nominated downside target located at US$60.00. Next support band under US$60, if that level is broken on closing basis, is located in US$56 - 58 range.