DAX 30
Rallying for a fourth consecutive month to within a whisker of the record high and almost overbought in the process (and certainly overbought on the daily chart). Possibly linked to lack of other attractive options in the Eurozone.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
A third consecutive rather unsteady little monthly candle with spike highs and as overbought as we were in 2013. Not comfortable at these record highs.
SHORT TERM TRADER: Square.
POSITION TAKER: Small short at 7300; stop above 7450. Target 6650.
S&P 500
Signs of instability on the monthly chart with a little doji as the fifth consecutive bullish candle. Clearly overbought at the record high.
SHORT TERM TRADER: Square.
POSITION TAKER: Small short at 2335; stop above 2405. Target 2150.
BRITISH POUND/US DOLLAR
Holding around 1.2500 for a fifth consecutive month and marginally less oversold. Gaining to £0.8500 against the euro this morning as political uncertainty swirls.
SHORT TERM TRADER: Small long at 1.2415; stop below 1.2355. Target 1.2600.
POSITION TAKER: Square.
EURO/US DOLLAR
Not oversold though bumping still along the bottom of the range of the last two years.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
A number of the more alarmist analysts suggesting investors should hold precious metals in their portfolios. However, looking at this long term gold chart there is nothing in it at the moment that would support a bullish view.
SHORT TERM TRADER: Small short at 1250; stop well above 1265. Target 1200.
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.
