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Technical Analysis: MSCI World Index and AC Asia Ex Jap [28/03/2020]

Last updated: 28/03/2020


In this article, I will be zooming into the technical analysis of the MSCI World Index and AC Asia Ex Jap, both of which serves as our benchmark for our investments. Hopefully, this will help provide you with some perspective of recent developments in light of medium-term (10 years) and long term (25 years) trends.


For fundamental analysis, you can read it here.


MSCI World Index

Medium Term Trend Channel

Long Term Trend Channel

Support Turned Resistance

Price-to-Earning Valuation Band

comments & signals for MSCI World Index

Medium trend channel: Testing long term channel support line

Long term trend channel: Rebound moving towards resistance line

support turned resistance: Rebound moving towards resistance line

Valuation Band: -


Price level to watch out for (major support/resistance lines):

  • 2250 (short-term resistance)

  • 2050 (long-term resistance)

  • 1600 (previous low)


MSCI AC Asia Ex Jap

Medium Term Trend Channel

Long Term Trend Channel

Support Turned Resistance

Price-to-Earning Valuation Band

Comments & signals for MSCI AC Asia Ex Jap

Medium trend channel: Testing med-term support

Long term trend channel: Rebound moving towards resistance line

support turned resistance: Testing med-term support

Valuation Band: -


Price level to watch out for (major support lines):

  • 730 (long-term resistance)

  • 580 (med-term resistance)

  • 500 (previous low)

Overall comments

From the above charts, we see that the market recent rebound pushed prices towards the next resistance line. Currently, we're in the neutral zone from which prices are showing mixed signs of either a :

  1. Uptrend recovery

  2. Dead cat bounce and continuation of downtrend.


Personally, I think the second scenario is highly likely given the current short-term fundamental outlook as well as market pessimism. I speculate that the as Q1 and Q2 earnings get released in the coming 4-5 months, prices will continue to fall further, testing the respective support lines.


Do consume the insights at your own risk and develop your own decision based on both fundamental and technical analysis rather than relying on single metrics for measurement.


Should you need any help or second opinion on your financial and investment planning, feel free to contact me directly at 9234 7537 or drop me an inquiry here.


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Daniel is a Licensed Financial Consultant with MAS, who specializes in retirement and investments planning. Find out more here.

Disclaimer:

This article is meant to be the opinion of the author and is for information purposes only.

This article should not be seen as a financial advice

This advertisement has not been reviewed by the Monetary Authority of Singapore