Today's Interesting Charts
Comment of the Day

June 23 2011

Commentary by David Fuller

Today's Interesting Charts

Price charts reveal the difference between reality and consensus.

David Fuller's view Orange juice (weekly & daily) has reaffirmed its overall upward trend with another new high. A close beneath the mid-June low at $176 would be required to offset current scope for somewhat higher to sideways ranging in a further test of the 2006-2007 peak.

Gold (weekly & daily) encountered resistance beneath its April high and has fallen sharply during the last two days, forming a weekly key reversal in the process. This indicates susceptibility to additional mean reversion towards the medium-term trend represented by the rising 200-day moving average.

China's Shanghai Composite Index (weekly & daily) has checked its short-term downtrend with the biggest upward dynamic since February, forming a weekly key reversal in the process. A close beneath 2600 would now be required to offset current scope for sideways to somewhat higher ranging.

India's Sensex Index (weekly & daily) rebounded in a strong upward dynamic today after encountered support near the February low earlier this week. While it is still in an overall downward trend, evidenced by a sequence of lower rally highs since November, a close beneath 17,300 would now be required to reaffirm a further test of underlying trading.

Indonesia (weekly & daily), Malaysia (weekly & daily) and The Philippines (weekly & daily) are very steady and well above the year's reaction lows established between January and March. These ASEAN Indices were among the recovery leaders in 4Q 2008 and approximately this time last year following 2010's significant correction. Breaks in the June reaction lows to date are now required to reaffirm resistance near the upper-side of their 2011 trading ranges. (See also Eoin's comments on sector leadership below.)

Quote of the week - On opportunity and entitlement:

"People need to be taught the difference between opportunity and entitlement. If it is all entitlement, they shoot opportunity."

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