Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Global Stock Markets Outlook Ahead

Stock-Markets / Global Stock Markets May 21, 2012 - 08:20 AM GMT

By: Sam_Chee_Kong

Stock-Markets

Diamond Rated - Best Financial Markets Analysis ArticleFor the past week, stock markets around the globe can best be describe as ‘looks like 2008’ about to be replay. Most markets are loosing ground and in fact most recent lows are being tested or broken.  In line with most of our analysis for the week ending 19th of May 2012, most markets are facing a freefall. Below is the Executive Summary for this week’s analysis of selected markets around the globe. This analysis is purely based on technical analysis and also partly with the use of spectral analysis.


We use Spectral Analysis to help us analyze both the stationary and non stationary part of the stock prices. Traditional methods of using indicators and oscillators can only be used to predict the stationary part of the share price. This is because in normal market conditions share prices don’t move together but during markets crashes most if not all stocks will go down together. Hence there is a need to study this non stationary part of the stock prices with other methods and  in this case with spectral analysis which can give a better timing on market movements.

Anyway Spectral Analysis had long been used by geologists to estimate the amount of oil in an oilfield during exploration with great precision.Another advantage of using Spectral Analysis is that it needed only limited data to predict an outcome with great precision. Unlike Fourier Transform you will need at least 10-15 years of historical data to arrive at some accuracy in its prediction.

Let take a look at the following markets.

America – Dow Jones

What we can see is the Dow is in oversold condition and further drop will be capped and a rebound in stock prices is on the way next week. Nevertheless the Dow is just at the beginning of the down trend. More room to fall.The next level to test will be 11735.

Europe – Germany DAX

The DAX is quite similar to the DOW which is also in oversold condition and further drop will be capped and a rebound in stock prices is on the way next week. Nevertheless the DAX  is just at the beginning of the down trend. We expect more room to fall. The next level to test will be 5845

ASIA – Jakarta

The bad news about the Jakarta Stock Exchange is that is closed for the last two trading days in the last week due to public holidays. When the market opens on Monday, we expect the IHSG index to dive between 80-150 points so as to make up for the two days losses. Nevertheless it will test the 3839 level next week.

ASIA – Kuala Lumpur KLCI

Kuala Lumpur’s Composite index’s fall will be capped by the following.

  1. Oversold condition
  2. Positive Divergence in RSI

So we expect the KLCI to stage a rebound next week with limited downside.

ASIA – Japan Nikkei

Since it broke the 9390 level in early May, it has been free falling. Chances is that it might test the 8275 level before it will rebound. Oversold condition also help prevent further fall in the Nikkei and we expect a rebound in the Nikkei next week.

ASIA – Bombay Sensex

We expect the Bombay Sensex to rebound soon next week as it is already in an oversold condition with a double bottom forming in the RSI  indicator. After that we expect to see it to test the next support at the 15135 level.

ASIA – Hong Kong Hangseng

As expected with our earlier analysis, Hong Kong’s Hang Seng will free fall after it broke the 20,000 support level. The good thing is that the market is in oversold condition but further drop to be expected before any meaningful rebound can be expected.

Nevertheless the next support waiting to be tested is at the 17615 level.

ASIA – Singapore Straits Times

There is a big gap down in the last trading day and we will expect the index will rebound to this level. Market is highly oversold and it is screaming for a rebound next week not before another drop.

ASIA – Shanghai

We expect the Shanghai index to test the 2333 support level. Any breakdown will see the SSE to display further weakness. The danger on the SSE is that its RSI is Dverging, meaning further big drop in he index is expected soon.

South America – Brazil’s Bovespa

In line with our earlier prediction, after breaking the second support level at 61195, the Bovespa  indeed free fall very hard. It manage to wipe out another 6000 points but it is highly oversold and we expect it to stage a rebound next week.

So all in all, Global Stock Markets performed badly for the week ending 20th May 2012 but most markets are already in oversold conditions. This means we expect to see a rebound in global stock prices in the later part of next week. 

 

The only market that we expect to see a big dive is the Indonesian IHSG as it escaped two days of carnage and hence it will have to make up for the losses next week.

by Sam Chee Kong

Samcheekong.blogspot.com

cheekongsam@yahoo.com

    © 2012 Copyright  Sam Chee Kong - All Rights Reserved

    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in