TSX, Bovespa and Kospi Forecasts – Global Indices Mixed and Focusing on Energy

TSX Technical Analysis

The TSX in Toronto is currently hovering right around the crucial 33,500 level, an area that has been important a couple of times in the past. It looks like the momentum is a little sluggish at the moment and that does make a certain amount of sense considering that crude oil is such a major factor in the TSX as well as natural gas, but basically energy in general.

There are a lot of questions as to what is going to happen in the Middle East. As we wait to see what the results this weekend of the talks are going to be, that has major implications here in Toronto. Short-term pullbacks probably get bought into with support near the 50-day EMA.

There is pressure on Canadian financials right now, so keep an eye on Royal Bank, Brookfield, and a couple of other names like that. That would be the main laggard. Nonetheless, the TSX is still something I’m pretty bullish on.

Bovespa Technical Analysis

The Bovespa in Brazil continues to rise. It is a net exporter of oil, so this, of course, is a good thing for Brazil, but it is also basically a situation where inflation is sticky in Brazil, so that is something to pay close attention to. Markets continue to be buyers of dips here, though, and I do like Brazil as a South American play; a good emerging market economy play in what seems to be a fairly robust stock market.

Kospi Technical Analysis

Finally, we have the KOSPI in South Korea. It’s probably going to see a lot of noisy chop in general, but it is rising mainly due to the whole expansion in Asia and technology. That being said, the one real problem they have in South Korea right now is they are a net importer of crude oil and in other forms of energy and in fact import I believe all of it or something close.

Pay attention to AI-driven stocks such as high bandwidth memory companies, Samsung, etc. probably big movers here. I do think that this is more positive than negative. Short-term pullbacks should be thought of as potential buying opportunities and keeping an eye on the 6,000 level as resistance.

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