Saturday, April 10, 2010

TAIEX Outlook - Week of April 11th

Another month has passed since I last checked up on the TAIEX, and it is currently hanging out just below the 8100 mark I mentioned in my previous post here.

Above 8100, a good long setup is in place for a run to the recent highs at 8395.38, if not new highs (if you are not already long).

A look back at what I said a month ago:
Above 7900 on strength, there's not much resistance above, and could quite easily make a run for the '10 highs at 8395.38, with a test of 8100 gap resistance first
And while the chart above does not have volume indicated, the ETF for Taiwan (EWT) had that "strength" that I talked about - it traded 60 mil shares on the day of the breakout, 4x the average volume of ~15 mil.

For those in the U.S., you should note of days around April 15th as a potential top in the markets as that is the last day for individuals to fund their IRAs for the 2009 tax year. Until then, there is that possibility of the additional inflow of cash into funds to continue to prop up this market. Just so happens OPEX is April 16th, and things tend to get crazy on those days.

And oh look, someone else also had mentioned the resistance level of 8100. This is another good reason to have knowledge of technical analysis when you invest/trade. Whether you actually "believe" in TA or not, it is nice to look at a chart and see price levels that everyone else is looking at. In a way, it's like a self-fulfilling prophecy.

In lighter news, Taiwan's "Susan Boyle" has become viral. I'm a day or two late, but if you are somehow in an e-cave, here you go, so you can be in the know.

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