Wednesday, November 27, 2013
Asian Markets Less Japan Hitting Strong Resistance in Lower 60s
Above is a weekly chart for the all Asia less Japan ETF. Over the last three years, prices have continued to hit resistance in the lower 60s -- a feat they've done no less than seven times. That gives this price level an incredibly large amount of influence over this chart.
So -- why has this happened. At various times over the last three years the Asian markets have potentially run into problems, usually related to China. These concerns are usually related to the PBOC engaging in some type of behavior to drain excess liquidity from the system.
Finally, I'm not so sure I like the call that the chart has a reverse head and shoulders over the last few months. However, I've seen other analysts make similar calls with charts that I think were pretty questionable.