The Australian Index AORD has been forming a expanding triangle since September of 2009 and also it is forming a expanding triangle since september 2010 in the final leg of the bigger expanding triangle. Expanding triangles normally retrace completely. So the present rally would terminate some where between 4900 and 5250 in levels in near future.
A correction from these levels is likely to terminate around 4600 initially. Break of 4600 could foretell a big correction for AORD. A rally past 5250 could only negate the present bearish scenario for this Index. Almost most of the Western Markets are trading in the same pattern. The bearish pattern is not only seen in AORD, but also in all World Markets.
And also, the rally after October 2009 has not moved above the all time high the AORD formed on 2007. The present rally would miss the previous high by a huge margin, if the present rally terminates around 5250. As of now selling the index when it moves towards 5250 will fetch some good returns from a traders point of view.
Since 2009 September, the United Kingdom stock Index FTSE has been trading in a expanding triangle pattern. Expanding Triangle is a reliable. But trading and projecting will be very tough for any Analyst or Trader. The price pattern suggests, the present rally from the low of 4800 from June 2010 seems to be the last leg of the Expanding Triangle.
The last upside rally in an Expanding Triangle would be followed by a last downside leg. If FTSE behaves as we project then it is likely to see a correction towards 4400 levels in coming weeks. For the short term, the level 6000 seems to be a crucial level for the coming trading session. If it could sustain above that level, a short term rally towards 6300 is likely. If not a correction towards 5450 is likely
In the Long term, since it failed to clear the 2007 high, this Index seems to be in a bear market.
Ever Since September 2009, Nasdaq Index is in expanding triangle pattern. The present rally from september 2010 seems to be the third leg in the upside, which is also seems to be the last leg of the expanding triangle.
Presently, Nasdaq is trading at 2660 levels. Earlier, in 2007 it tested a high of 2870. That level 2870 is likely to be the next upside target of Nasdaq. In the downside the level 2550 is going to be a strong support in the near future. For another 2 to 3 months it is likely to trade between 2550 and 2850.
In the medium term a correction could be possible towards 2100 from 2850.
Dow has been in a medium term rally since it tested 9600 on july this year. Recently, it made a year high at 11615. After testing its high it has been trading just below that level for the past two trading sessions. From here on the level 11300 seems to be crucial. As long as it trades above 11300, it is likely to test 11900 in coming weeks.
On contrary , if breaks 11300 and trades below that level, then it is likely to decline towards 10900 in coming weeks. Futures traders can hold their longs with a stop at 1130. And fresh Shorts can be initiated when Dow rallies towards this level.
The long term trend continues to be bearish. Dow is likely to make major top in the middle of 2011. Until then, one can hold their investments.
For the past three months, JKSE is taking support at 3520 levels and it is likely to act as a trend decider for the coming trading sessions. In the upper side it was resisted from 3800 region for two times. Currently it is trading 3600 and it is very close to the short term support level of 3520.
If the index breaks 3660 in the short term it is likely to remain bullish and in the upper side it would try to test 3800 levels once again. On contrary, if it fails to move past 3660, then it could all set to test 3520 again.
Right now, the trading strategy should be based on the level 3660. Traders have a eye on that level to initiate short or long positions.
In the long term charts, the index has moved past its 2008 high of 2850, and made an all time high at 3800. Technical analysis of the index shows it is going to top out in this year 2011.
