Thursday, May 12, 2011

Asia Equity : Australia, China and Hong Kong 5-12-2011


AORD’s recent rally to the 5k level really went off due to weak accumulation and negative divergence in the Weekly Charts. It is now ranging from the 4700-5000 level band, and is gathering strength in order to break out of 5k level. The negative divergence really put up a huge barrier and a greater risk of more correction into this market.

On the brighter side, AORD is still in long term uptrend, and accumulate near 4600 level with an overall target of 5200-5400 (support of yr. 2008) once breakout of 5k level.

SSEC’s is poised to have the biggest move of all time in the upcoming months. The narrowing of the trendlines really pose a huge movement to this market. It is now 3050 level vs the 2700 level. Who will win? I am betting on the upside, Once a successful breakout, we have a target of 3500-4000 level. Accumulate if it goes as low as 2700-2750-2800.

HSI is still in short term downtrend, with a trading band of 22k-24k. The range is too huge to be an opportunity for good trades. This equity is already lagging compared to other asian countries, both HSI and SSEC are short term downtrend, waiting and accumulating momentum. We still forecast HSI and SSEC to beat upon expectations, and a breakout of 24k level soon, will have an upside target of 26k.

Overall, I see our neighboring countries struggling to be in their new highs, having a lot of correction and gaining momentum. While our PSE market, is still attempting to hit the All time high of 4,400. If this issue persist, I am more than willing to shift funds to other Asian markets and avoid PSE at this moment.

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