 Hello traders at CMC Markets. Welcome to another update by RRG Research for Monday 10th of October. I'm recording this on Friday the 7th of October. My name is Trevor Neal. I'm presenting from London and I'm research director at RRG Research BV. We start as usual by looking at the relative rotation graph of major indices versus the MSCI world index here at the crosshair in the middle. We notice immediately the most indices are on the right and so outperforming the global index itself. Notably not on the right is the handshane, the poor old handshane. I'll come back to that in a moment. Drilling down we look now at a daily sampling of the RRG global indices versus the MSCI world and there is something very striking here. Yes, mostly things are over on the right. Yes, again the handshane is confirming in the shorter and in the longer term that it is very poor indeed, poor old handshane. But look at the direction of this bundle of indices here. We've got the Dow, the CAC, the DAX, stocks, the Australian index, the Nikai and the FTSE all heading in a south-westerly direction. So we had a substantial bounce this week in stock indices, but they've hit, many of them have hit their resistance levels and have lost some momentum. The south-westerly direction infers a decline in both RS ratio, so outperformance of the index itself and momentum of it too. Let us start by looking at the poor old handshane. Unusually let's look at it with a chart where each bar is a month. Here we broke that very important level which we've been highlighting of 18,200. It broke that to 16 low and we plummeted. Now we plummeted right back to the 2011 low here which is being tested. Now this is a support level, we did bounce from there and we've stayed above it since 2011, but this level is terribly important. If 16,000 were to give way or 16,000 to 17,000, a spike shadow in there were to give way and then I think we're in a terrible situation of potentially coming right back to the 2008 low of, I mean really 12,000 down there. So it is support, so let's respect the support is a monthly support of course as well. It is deeply oversold, we can see that in the RSI here, so there is strong potential for a bounce. So very much overdue, we've been coming down for a long time, now it's been a virtually a one-way street, but it is still looking very very weak and still looking dangerous. So it's a weak security which is looking dangerous for another plummet. The gap between here of 17,000 down to 12,000 is enormous here and we moved up and down and up into it very rapidly. So we could move very rapidly through it on the downside too if it does find the give way. Suspect not immediately and it's more vulnerable to a rally, but this is the candidate for if you were doing any pairs trading of stock indices for your short leg. It is still very weak, it's back to this important support level. So that's what you behave here and recognize however extended it is, although the trend is very very weak indeed. Last week Julius did a scan and leave despite the falling markets of the time three stocks came up and I'd like to follow up on on those ones which he commented on in detail. That was ABV, ABBV, LAN Western Holdings Incorporated, LW and also Win Resources, WYNN. So let's go through those now and see how they turned out after his highlighting and discussing the chart patterns that we saw. Now the first one looked like to it might be and bear in mind this is a week ago that he did this a reverse head and shoulder, shoulder, head, shoulder here, neckline here and that's when we were talking. So the potential was for a break of the neckline and then a swing up from there towards the resistance at 150 in ABV, but it didn't break up. This is the important thing, it didn't break up, didn't break the neckline, never triggered the reverse head and shoulders and it sunk hard hard. It has bounced since and it sunk right down to the previous low of the end of August but and held there but still this wasn't this one looked as I had great potential to the upside but it didn't crucially did not trigger the signal. Now second stock that Julius highlighted from our scanning was LAN Western Holdings and he liked the pattern here, the rising lows pattern, rising highs pattern. We had pull back, we had consolidated here, we had a constructive looking pattern in the RSI at this point and the scan picked this one up and we thought the chart looked good even though it had drifted. Well it shocked higher, it shocked higher from 77 up to 84 and retested its mid-August high here, hasn't broken it yet. In fact we've got a couple of shadows on top of it now but it's looking constructive. Potentially it could leg higher if it breaks through that 84 level there properly but it's got off to a good start having been talking about it when we were down at 78 there and now we're up at 82 for the security. So that one has started well if you like and it's still looking like it has further potential if it can take out that August high. The third stock that Julius highlighted last week was Win Resources Limited and this broke through its 70 resistance level, we had three highs in there in place, we had this rising lows pattern a good case to be made, sort of kind of a complex head and shoulders here, reverse head and shoulders, two lows here making the left shoulder, two lows here making the right shoulder, two lows here sorry making the head and two lows here making the right shoulder but very clearly no doubt about it 70 the round number was the reverse was the neckline for the reverse head and shoulders. We shot through it during the week blasted away powerfully nice action in the RSI now we measure from the head to the neckline so that's essentially 50 to 70 and then add that to the neckline 70 90 that gives us the calculated minimum price objective. Yes we have got some resistance at 80 but up here at 90 that is the minimum price objective that takes us back to the February high so with this kind of consolidation forming a base and this strong break like this this does look as though it may well have followed through so we like this one and we will keep on tracking it. So this has been my round up of Julius's featured securities last week from from the US he also has featured securities from the UK from the FTSE Allshare which have done well you know this has been very good performing index largely because of the week sterling but we'll save that for later to follow up on those ones and we'll keep on scanning using RRG scans and look for interesting things for you to focus on and opportunities for you. I'll leave it there for this week again thank you for watching and we will be with you again next week most probably it will be Julius same time same place goodbye bye from Julius and I of RRG research and may the trend be with you