Daily Brief Technical Analysis: China Longyuan Power (916 HK) - High Probability 22% Rally Confirmed at the January Close and more

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.

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.

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.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network