Top pick for the day - Taiwan’s TAIEX

LT correction is still ongoing?

Taiwan’s TAIEX (TWSE) is still caught within a multi-year triangle consolidation pattern.

There is likely one more leg lower to complete this pattern… before a multi-year bull run takes place.

TWSE could potentially see one more leg to below 7,203 before this final wave-e of the large triangle is complete.

Potential stopping area would be close to the 5,700 levels, where wave-e is equal to 0.618x of wave-c. With 6,000 being a round number, we also expect prices to be pulled towards that level.

Hence, the 5,700-6,000 would be a level to look out for a reversal in the years to come.

Only a strong rally above 10,014 would suggests that the multi-year bull run is already underway.

In the near term, the recent move above the resistance trend line signals that there is likely still a tad more upside, targeting 8,940-9,000 before a pullback takes place.

Falling below the recent low of 8,503 would likely signal that a ST correction is taking place. The 50- day SMA would act as a support on the pullback. (Read Report)

Source : CIMB Research