SG30 (SiMSCI) analysis down to Blue, Red and Green

SG30 is looking like a slow motion breakdown according to these charts. Watch weekly price action: until there is a bullish expansion (careful of false breaks) in the week, price trend is now in bears’ favour.

Weekly chart (top)

  1. Weekly candlestick chart from June 2017 to present.
  2. Overlaid with 4 weekly exponential moving averages according to roadmap explained here.
  3. Red line for 13-week ema (1 quarter), blue line for 26-week ema (half year), green line for 52-week ema (full year) and black line for 104 week ema (2 years).
  4. There are many roadmaps but I favour this when I look at the weekly time frame. As you can see from this previous analysis on SG30, price reaction to the weekly exponential moving averages in this roadmap is verification that it works or is being followed.
  5. According to this roadmap now, this time is different: in the previous correction, SG30 was supported and then took off after getting support from the 26-week ema (blue). The green (52-week) is now in play which means the index is weaker than before. Additionally the blue was now crossed multiple times in the last few week and the 13-week (red) is now offering resistance.
SG30 weekly (top) and daily chart

SG30 weekly (top) and daily chart | Source:

Daily chart (bottom)

  1. Big boxes paint month price action (H, L).
  2. Small boxes paint week price action (H, L).
  3. SG30 fell since the last 3 weeks with lower highs and lower lows.
  4. Despite volatile action last week that appears to signal support, the week ended in the read.
  5. Bulls are not getting anywhere, bears are not getting anywhere, there is not a lot of ‘net’ movement but it is there in bears’ favour.
  6. Note the black dotted line showing closing level of 2017 which is almost the same as 2018 opening. Fact that SG30 was hovering here since 3 weeks shows that it is struggling to stay in the black. It says something that SG30 is not able to move down but if it was truly bullish, it should have moved up. The longer this index stays here, the lower it will go if/when support eventually breaks.
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