Morning Analysis / MorgenAnalyse / Analyse du Matin / Analisis por la MañanaTechnology Scandinavia
After a deep correction in the summer 2006, the index resumed the long uptrend since 2003 even over the year end 2006, the same pattern evolving in 2007: The steep rise since mid August destroyed any resistance of 2007, climbing to a new year-high in end of October, defying a short correction over the Oct/19 watershed. Two steep neutral candles attacked the resistance there a second time, but failed with a plunge in mid November. A strong candle at the bottom - but not one of type one-day-reversal (we didn't see no such trend reversal all over the world) jumpstarted a rallye. But this failed to cover lost territory in December, which led to another deep correction. Preceding Wednesday's steep strong candle launched an attack onto the upper boundary of a strong bottom pattern, four weak ones attacking the support at the low of November fought off by four neutral ones over the Christmas break and two higher strong ones closing the year. A strong one strong one positively engulfs the first weak one of 2008, but then a flux of weak candles throws the market downwards. Preceding Tuesday's too high a strong one is negatively engulfed by Wednesday's weak one, two neutral ones positively engulfing both - a sign for strength, Monday's weak one neutralised by Tuesday's neutral one.The
AIM 100 Index (UK) resumed the midterm downtrend in early November, after failing to regain lost territory above 5500 since the high of 2006 above 6500. An abundance of weak daily candles, a lonely neutral one in between, was stopped only by psychological support at 5000, which trampolined the market up, making this support a charttechnical one too. But the gain was not enough, this barrier staying in a shooting distance. The bottom pattern of the first half of December failed with six weak candles over the weekend, ridiculing past Tuesday's strong one, destroying the support at 5000 of November in an intact shortterm downtrend. The week before Christmas nearly has capsized down this ship in treacherous waters, a strong and a neutral candle building up support, two higher weak ones over the Christmas break overrun by a steep strong and a steep neutral one, a breakout from a strong bottom pattern. The new year starts with two rising strong ones, but then six weak ones turn the trend down again, breaking a support level at 4900. Preceding Monday even plunged with another two weak ones after. Two neutral ones after enforce the support, Monday's weak one being positively engulfed by Tuesday's neutral one.The
Internet Wall Street shows the same chart pattern of the majority of the world's hightech markets, resuming in 2007 the long uptrend since 2003, with a major correction in 2006. The plunge started in end of July was terminated in mid August by a steep rise, leading to a new longterm high end of October with a strong breakout with two strong daily candles, overcoming easily the Oct/19 scrutiny. In November a sudden plunge drove the index down to 27, a weak candle even plunging out of a dangerous 'descending triangle'. But then suddenly support was built up below 27, a strong candle and two neutral ones after, a weak one in between, enforcing this support - the market rose again. A strong candle even managed a breakout, but the bottom pattern was such distorted, that this breakout failed with eight weak candles in line. For keeping the chance for a strong bottom pattern alive we need more strength in the new year than even four steep neutral ones over Christmas, a strong one in between - since eight weak ones over the yearend are a ferocious breakdown out of a 'double top' of two months duration, destroying any support since August. Past Monday's strong one is swallowed by four weak ones after - a plunge. A neutral and two strong ones build up first support, but the two candles over the weekend are weak again. Internet Europe: This chart pattern now is the weakest one among the world's hightech markets, the year-high of end of February 2007 sitting considerably lower than that one of the preceding year 2006. So the long uptrend since 2003 meanwhile is terminated. The uptrend resumed in March only led to a march sideways close to 185 until the plunge of August finally turned the trend downwards. Attempts to stabilise the support around 160, with even an intraday attempt to breakout still in November, are under pressure from ten weak candles, plunging the index even below 150. From there a new uptrend was started, but without one-day-reversal, which means we remain cautious. This uptrend ran out with four weak candles and a dangerous 'rounding top' pattern. Two strong candles after Christmas are overrun by the four plunging weak ones of the new year. A strong one is swallowed by seven weak ones - preceding Monday's plunge in between overwhelming the last support. Three neutral ones, Monday's weak one in between, increase the support.
