As a follow up to Monday’s post about what appears to be a global equity breakout, my next two charts are from Asia. Both Taiwan and Hong Kong look very strong. In both cases, price has broken above prior resistance and is above a rising 200 day moving average. RSI momentum is in the bullish zone, is rising but has more room to run before it reaches an overbought state.
Additionally, in both charts price is moving strongly higher on the breakout from the neckline of an inverse head and shoulders reversal (bottoming) pattern and have more room on the upside before their targets are hit.
While the timing is a little late to the party, it looks as if both of these opportunities could provide swing investors with additional upside potential with limited, known, downside risk.