Europe and India

Well, just like last (MACD) post, I cannot delay this one any further. I have been talking about this post for  a while now. Just like I checked few stocks of NIFTY to see any sign of stress in this rally, I wanted to check few global equations as well. Lets get on with that.

Europe

I was slightly confused about which index of Europe should I analyse; choices being German DAX, French CAC40, UK FTSE100, Spanish IBEX or Italian FTSEMI. All of them have their strong reason to warrant a look but given the dearth of time, it was impractical to post all of them. Facing probably same dilemma, some noble fellow has already invented European Top 100 index which tracks the performance of most widely traded 100 stocks across 9 European exchanges and weighed according to total Market Capitalization and Gross National Product of each country. Details of these stocks can be found here. Here is the chart.

The Index has been nicely moving up since June. It has just now broken the lower line of the channel but that may not be a decisive move. Interesting part is about its close proximity with 50 Moving Average which is at 225.26 and present level of 227.37 is tantalizingly close to it. RSI is at an extremely comfortable level but MACD is showing little drop in momentum though it is not exactly at alarming level.

Very important level to watch out here is low of first week of September which was around 222. A decisive break of that low will mean a lower low negating the present bull run for the first time since it's start. Rest of the indices in Europe are more or less having similar charts and similar predicament. A few more trading sessions should give us some more clarity and possibly very clear (and beneficial) trading opportunity. As of now, as I said, I prefer short side in the present series.

If I wait till I compare everything I want, this post would probably never happen. So I want to make few more post with title like USA and India, Commodities and India, BRIC and India (hope you get the idea) to see how do we fare so far compared to rest of the World and how much steam is left before we roll over to some correction. Hope to get some real time for that which is becoming increasingly difficult. Wish me Luck. Amen.

Happy Trading in the meanwhile.