Friday, November 27, 2009

TAIEX : 4th Break of 50DMA

On the news of potential defaults by Dubai, the world markets sunk over Thanksgiving and into black friday. Glancing at the TAIEX, which along with the other Asian markets, has lead the way up in this rally since March, we should note what happens over this next week. Here's a 6 month daily chart of the TAIEX- take note of the times that the 50DMA was breached, and then taken back within the next 3-5 trading days.

If the TAIEX fails to regain the 50 within this next week, I will be looking in greater interest to establish a good short position on the markets. Careful out there! The markets have come a long ways since the lows in March, and a correction should be anticipated.

No comments: