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In today’s briefing:
- China Longyuan Power (916 HK) – High Probability 22% Rally Confirmed at the January Close
- Caution Warranted; ACWI-US At $93 Resistance; Buys in Communications, Staples, Materials, Financials
- Rio Tinto PLC (RIO LN) – Prominent Topside Failure – Meaningful Correction Risk
China Longyuan Power (916 HK) – High Probability 22% Rally Confirmed at the January Close
- At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
- January 2023 confirmed a high probability bullish outlook when all 3 pillars were definitively triggered.
- Monthly Relative Strength Index (RSI) has an incredible multi-year history of confirming large upswings in 916 HK. January completed the 5th such bullish confirmation since 2014. Multi-month target at 12.945.
Caution Warranted; ACWI-US At $93 Resistance; Buys in Communications, Staples, Materials, Financials
- With the MSCI ACWI (ACWI-US) approaching the top-end of our expected 2023 trading range at $93, we see limited upside from here, and we believe caution is warranted.
- We want to remain overweight Europe and the UK, but we prefer to buy only on pullbacks.
- The Hang Seng and MSCI China (MCHI-US) are both getting rejected at their important resistances discussed last week, and we would expect to see a basing process develop below resistance.
Rio Tinto PLC (RIO LN) – Prominent Topside Failure – Meaningful Correction Risk
- At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
- Friday’s weekly close is setting up to confirm a high probability bearish outlook when all 3 pillars are definitively triggered.
- A weekly close below 6077 will confirm a high probability multi-week to multi-month correction target in the 5415/5650 range.
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