Kim Jong Un with a surprise visit to China

Kim Jong Un made a surprise visit to Beijing during his first trip outside North Korea. It is still unclear why and how long Kim will remain in China, but the change in North Korean leadership has given the international community hope that his plans to denuclearise the region will become a reality.

Markets reflect the news very positively and on time. Major indices in the US record a near-percentage rise from levels of strong support, indicating that bulls take precedence. Taking into account investor behavior and technical analysis, the long-awaited W-Shape Bottom is now available.

Let's look at the SP500

The price remains in a rising trend, above 200SMA, forming a W-Shape formation that is characterized by a very good success rate. From Price Action's point of view, it is early to speak, but the indoor bar that is formed will hardly be able to go beyond the previous bar until the end of the session. If the price closes within the bar from Friday, we will have a strong signal to reverse the direction to the upside. DeMarker is in the over-sales area and pointing upwards, and Sequential counts down the bottom of the downward wave. Entry from the current levels will be capped at SL at $2520.

The perverse move follows US President Donald Trump's decision this month to give Kim an unprecedented meeting after South Korean officials say Kim is ready to discuss the end of his nuclear weapons program. Diplomats from the United States, North Korea and its neighbors have since passed around the world to prepare for the summit.

Source: Bloomberg Pro Terminal

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