Sunday, March 13, 2005

An International Look

Now more then ever investors and traders need to look at every corner of the globe to find quality investments. This is becoming easier and easier. There are ETF's and IShares and all sorts of investment vehicles that can give you international exposure.

Below you will find monthly and weekly charts for the Nickei 225 and the Japan ETF. This is one ETF you might want to keep an eye on. Japanese equities have badly lagged the global stock market rally in recent months as the global economy cooled. It seems that the Nickei could be on the verge of a breakout, which could prove to be the signal needed for the Japan ETF.

Click to Enlarge Monthly View Posted by Hello

You can see from the monthly view of the Nickei 225 that it is on the verge of breaking out of a seeming inverse head and shoulders pattern. This breakout could send the Nickei 225 to the long-term downtrend line, which is now at around 18,000. This would be a move of around 50%. The Nickei 225 is currently in a trading range of between 10,490 and 12,000. A break above 12,000 would be considered bullish.

Click to Enlarge Weekly View Posted by Hello

This weekly view is also of the Nickei 225, but more focused on the current picture.

Click to Enlarge Weekly View Posted by Hello

The above weekly chart is of the EWJ, which is the IShares vehicle for Japan. You can see that the EWJ is currently in a consolidating triangle pattern. A breakout of both the Nickei and the EWJ could be a double bullish signal and you might want to take a position in the EWJ if/when this happens. The breakout of the EWJ could send the price up to the resistance line established in 2000. This would almost coincide with the 50% move from the Nickei 225.

Keep this one on your radar.

Best Regards,

The Soothsayer of Omaha


Post a Comment

Links to this post:

Create a Link

<< Home