Commodity prices weighed on the global equity, an extension of last week negative outlook. Crude oil fell 4%, at $64, with bounce-from-support seen at $60. China hopes of recovery failed to inspire the rest today. SH +1%, HS and NK –1%FKLI saw stop triggered at 5pm after failure to hold above 1060. Losses extended on cut loss selling in late trading. Internally, the mkt will continue to dig south in search for a credible short-term support. To reverse this trend July09 must trades above 1075++.
The mkt is very close of making a bearish signal, meaning if it breaks the uptrend line ( red line). But at the same time, the mkt could be at the tail end of 1st round of selling, So pay extra attention of price action around the red line.
Assuming no breakdown from the uptrend line (red line), this could signal a fresh uptrend and with greater momentum as the mkt “retested” critical support lvl. In short, do not sell too early into a rebound from critical technical support. So the next round is to 1) sell-on-breakdown and buy-on-strength.
Wathc out for crude oil price movement. If $60 hold, equity mkt will rebound.
No comments:
Post a Comment