DAX 30
A tiny little hanging man type doji on the weekly chart just under 2015’s record high denotes instability. The market is still overbought as it has been for a month. Watch Friday’s close to see if any significant monthly and quarterly candles pop up.
SHORT TERM TRADER: Short at 12025; stop above 12125. Target 11600, maybe 11400.
POSITION TAKER: Square.
FTSE 100
Nothing spectacular on the weekly chart but a tiny bearish engulfing pair over the last fortnight. Bullish momentum has collapsed as we trade only marginally higher than where we were this time last year.
SHORT TERM TRADER: Square.
POSITION TAKER: New small short at 7300; stop above 7450. Target 6650.
S&P 500
A rather irregular bearish engulfing pair of candles last fortnight as prices struggle at record highs for four consecutive weeks. Were the index to back off a bit it will be moving in tandem with the dollar and US Treasury yields where very crowded trades are being re-thought.
SHORT TERM TRADER: Square.
POSITION TAKER: New small short at 2335; stop above 2405. Target 2150.
BRITISH POUND/US DOLLAR
Bullish momentum has increased a tad as prices challenge trend line resistance. Merely one of many currencies gaining against the US dollar rather than anything UK specific. As for Brexit, Article 50 is bang on time and has been nine months in the making. The Japanese yen is leading currently.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Bullish momentum is its strongest in almost a year as the euro rallies for a fourth consecutive week. Now challenging December’s spike high at 1.0875, having gapped higher over the weekend, re-think time for US dollar bulls has started.
SHORT TERM TRADER: New small long at 1.0865; stop below 1.0700. Target 1.1075.
POSITION TAKER: Square.
GOLD
Back up close to February’s high, doing better than platinum and silver but lagging palladium. The weekly commodity channel index is beginning to look overstretched but with US dollar weakness likely to continue this week one has to give this one a lot of leeway.
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.
