DAX 30
Forming a shooting star candle on the weekly chart against the psychological 12000, under the record high in April 2015 is 12390.75, and overbought on the RSI again is not a winning combination. Keep in mind that 2-year Schatz hit a new record low yield at minus 95 basis points last week and 10-year ones have retreated from recent highs.
SHORT TERM TRADER: New small short at 11840; stop well above 12000. First target 11450.
POSITION TAKER: Square.
FTSE 100
Picking itself up ahead of Friday’s close it managed to close only fractionally lower on the week. However, it did produce a hanging man candle on the day and bullish momentum is negligible. Remember that the record high in January 2017 is 7354.14.
SHORT TERM TRADER: Small short at 7265; stop above 7355. Target 6950.
POSITION TAKER: Square.
S&P 500
More overbought on the weekly RSI than it’s been in at least two years which makes you think it’s in La La Land. Hollywood erroneously gave this film the best picture award this morning and after gushing acceptance speeches, had to retract it. I mean, really, this is not fake news.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Slapped down again from interim, resistance at 1.2570 – and not what we had hoped for. Not another week to be spent guttering around between here and 1.2400.
SHORT TERM TRADER: Small long at 1.2535; stop below 1.2400. Target 1.2730.
POSITION TAKER: Square.
EURO/US DOLLAR
A tiny hammer-like candle last week against decent support at 1.0500. Keep an eye on dollar/yen which is testing pivotal support around 112.00 this morning for signs of ‘risk-off’ mentality which might be creeping in.
SHORT TERM TRADER: Small long at 1.0625; stop below 1.0500. Target 1.0730/1.0800.
POSITION TAKER: Square.
GOLD
Quite extraordinary – and potentially overstretched – but spot silver has closed higher for nine consecutive weeks. Remember the Rule of 8 (to ten) which states that after a continuous move of this length a correction is due. Gold has retraced just over half of its most recent decline.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
MORE FROM NICOLE ELLIOTT...
Nicole Elliott is a longstanding Member of the Society of Technical Analysts and provides the IC's trading coverage. She is regularly interviewed and quoted by the financial media, is a conference speaker and author of several books on charting.
