5 technical features in this SiMSCI chart

This is SG30 chart (SiMSCI) from Oanda. Weekly time frame from 2015 – 04 February 2018. 5 features in this chart define SiMSCI trend and risk-reward proposition for traders: 1) rising equidistant channel since late-2016 2) steep trend line from September 2017 3) February high 4) major 2015-top at 399 and lastly 5) rising month-month price action.

There are 5 features in this chart:

  1. Equidistant channel from late 2016 – present. According to this channel, SiMSCI is still in uptrend but could easily retrace to bottom of this channel.
  2. Upward trend line from September 2017 to present. The index is thinking at this trend line at this moment. There could be support. Since this is weekly chart, we can only confirm depending on how the index closes at the end of this week and whether there is a rebound this week or next. Finding steeper trend lines inside channels is not unusual. It is also not unusual for price to fall out of a steep line, to find support at a more gentle one.
  3. Besides trend line support (point 2), it is also possible that SiMSCI found support at previous high (Dec ’17, Wk 52). This is the concept of resistance turn support.
  4. There is a former resistance at 399. Note that this is 2015- high and a major top. From this top in 2015, SiMSCI fell over 29% to a low of 280-281 in February 2016. The fact that SiMSCI is now back below this level should be some concern. It could become a strong resistance.
  5. Shaded boxes in this chart highlight rising month to month price action. This is the trend. SiMSCI printed a new high in January and the whole month-month price sequence shows higher highs and higher lows since October last year. If this sequence is terminated with a lower month, it would be a bearish development.
SG30 (SiMSCI) chart 2015 - 04 February 2018

SG30 (SiMSCI) chart 2015 – 04 February 2018

Loading Facebook Comments ...

Leave a Reply