DAX 30
Ludicrously tiny daily ranges as we hover almost at 2015’s record high. The MACD very unconvincing so far this month.
SHORT TERM TRADER: Short at 12025; stop above 12200. Target 11600
POSITION TAKER: Square.
FTSE 100
Overbought on the daily chart as we hover at the record high.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Divergence all month as we hover above trend line support at the record high yet the MACD remains resolutely bearish.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Slight wobble as the date Brexit negotiations will start is announced. An open letter to the BBC’s director general was sent by over 70 Members of Parliament (mainly Conservatives) complaining: ‘it particularly pains us to see how much of the good economic news we’ve had since [the] June [referendum] has been skewed by BBC coverage which seems unable to break out of pre-referendum pessimism’.
SHORT TERM TRADER: Small long at 1.2230; stop below 1.2250. Target 1.2500-1.2530.
POSITION TAKER: Square.
EURO/US DOLLAR
It looks as though some serious re-thinking on the strong dollar/rates higher mantra might be beginning. Watch for a weekly close above 1.0800 and then prepare for potentially a sharp short squeeze as the euro represents over half of the value of the US dollar index.
SHORT TERM TRADER: Square.
POSITION TAKER: Even though I’m really not a fan of the euro I will consider going long on a weekly close above 1.0800.
GOLD
Stalling at the Fibonacci 23.6 retracement level.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 1205; stop above 1240. Target 1160.
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.
