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As Emerging Markets Gain On Vaccine News, This Industry Lost

ByAxiory
AuthorTomasz Wisniewski
Published 11/10/2020, 08:30 AM
Updated 01/03/2021, 09:10 AM

Yesterday, many markets experienced a great upswing thanks to new findings about the COVID-19 vaccine. This definitely was very promising information which created a great environment for a new bullish wave. Markets are celebrating, especially those suffering recently the most, so emerging markets. In this fiesta, there are of course some losers. Nasdaq with tech companies, can be shown as an example.

Nasdaq originally surged on this news but the price reversed almost immediately. This is kind of understandable from the fundamental point of view. From a technical point of view, we received a proper sell signal. The price went above the upper line of the triangle but failed to hold above. That creates a false bullish breakout and a proper sell signal. The target is the lower line of the triangle and it looks, like we will get there pretty soon.

European indices are doing much better. DAX managed to break the line connecting top of the head and the right shoulder of the recent head and shoulders pattern. Sentiment is definitely positive and, in Europe, indices still have a lot of room to make new all-time highs.

Speaking about European indices, I have to show you FTSE, which is behaving really great. The index is showing the power of the false breakout pattern, that happened at the end of October. Yesterday’s info allowed the price to break the upper line of the wedge formation, which gives us a proper long-term buy signal for this London Index. The next few weeks for Stock Traders look promising.

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