Technical Outlook of selective Asian equity markets

Today, I like to take a look at the technical outlook of some Asian stock markets (as per the table below). All these markets had corrected sharply in the past few weeks and are all trading below their 200-day Simple Moving Average (SMA).

All these indices had however broken above their downtrend line (unlike the indices of the developed nation where some had broken above the accelerated downtrend line, not the downtrend line drawn from their recent peak). In addition, two of these Asian markets' indices (i.e. TWII & KS11) had seen their 50-day SMA hooking up. As such, I believe these markets are positioned for a faster recovery than the markets in more developed nations. Strong horizontal resistance lies ahead for all these markets, so their upleg move will not be swift & easy.

After looking through these charts, I believe that our market is trying to do a catch-up with other Asian markets. Undoubtedly, our market would be slower to recover due to our political uncertainty.





Chart 1: HSI's daily chart up to April 16th (from Yahoo Finance)



Chart 2: TWII's daily chart up to April 16th (from Yahoo Finance)



Chart 3: STI's daily chart up to April 16th (from Yahoo Finance)



Chart 4: KS11's daily chart up to April 16th (from Yahoo Finance)