Another ‘+’ update serving as a trade idea for traders and a global macro view for all subscribers. I like the idea of backing out Japan (using the AAXJ iShares) because I am not at all sure the BoJ is going to be able to subjugate the Yen in service to pumping its stock market, which still looks bearish to me. The rest of Asia however, looks constructive, much like the Emerging Markets (EEM) as reviewed last week.
Here on the weekly chart is Mr. Inverted H&S we have seen popping up in many markets and individual stocks. The pattern’s neckline intersects the high 54’s and this support ranges up to the high 55’s. A successful hold of this support range targets 66. Weekly RSI and MACD look good, implying that any over bought pullback could be very short-term in nature.
The daily chart brings in the view. With volatility, a patient investor may see the 53 area as ultimate support as that is where the SMAs 50 and 200 reside. I would prefer to see the high 54’s hold, however. Daily RSI is to a point that brought previous reactions and a drop to the support zone would be a buying opportunity if our intermediate-term bullish view on (many) markets is correct. gf
Buy Target: 54 to 55 (53 a possibility on short-term volatility).
Sell Target: 66 or anywhere lower that profit is acceptable.
Stop Loss: Below the 50 and 200 day moving averages (around 53), to suit risk tolerance. Definitely on a close below 51, which would break the uptrend.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.