Technical Analysis of Financial Markets

Saturday, February 23, 2008

iShares MSCI Brazil Index (EWZ)

Between August 2007 and January 2008, the iShares MSCI Brazil Index rallied 80% within a 5-month period. Since the sell-off in early Janaury 2008, price action has rebounded but has remained beneath the underside of the broken trendline; forming a triple-top formation with resistance at $85. An entry into a short position with a stop-loss on close above $85 may serve as a low-risk trade.

Saturday, February 16, 2008

Wal-Mart Stores Inc. (WMT)

Operater of retail stores in various formats worldwide, Wal-Mart has remained in a trading channel ranging from approx $42 to $51.50 over the last 28-month period. Price action is now approaching the upper band of this trading range providing an entry into a short position based on the assumption of the continued channel; stop-loss close above $51.50. Tuesday 19th; Wal-Mart is expected to report fourth-quarter earnings of $1.02 a share.

Friday, February 15, 2008

Cablevision Systems Corp. (CVC)

Founded in 1985, Cablevision Systems operates as a media, entertainment and telecommunications company in the United States. Having declined approx 90% over the last 7 month period, price action has now rallied towards the 38.2% Fibonacci extension level projected from the 7 month downtrend low. This level, at approx $28, has previously served as both support and resistance. With RSI and stochastics signalling overbought conditions, an entry into a short position with a stop-loss on close above $28 may serve as low-risk trade.

Thursday, February 14, 2008

Friday, February 01, 2008

FTSE 100, 50% Fibonacci Extension

The 50% Fibonacci extension level projected between the year low and October 2007 highs is currently serving as resistance on the FTSE 100. The monthly graph illustrates that both stochastics and RSI are currently overbought signalling a likely pullback. Long above 6034 otherwise short.