DAX 30
Looking fractionally top-heavy with another little shooting star candle yesterday which turned the MACD into the red. In this holiday-shortened week the temptation to cut and run might be more pressing than usual.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Still making a meal of the right shoulder of a potential small head and shoulders top that has been forming this month.
SHORT TERM TRADER: Square.
POSITION TAKER: Small short at 7300; stop above 7450. Target 6650.
S&P 500
The MACD perennially in the red since the record high yet downside momentum is pathetic. We do however have potentially three consecutive descending interim highs.
SHORT TERM TRADER: Small short at 2345; stop above 2385. Target 2265.
POSITION TAKER: Small short at 2335; stop above 2405. Target 2150.
BRITISH POUND/US DOLLAR
Yesterday’s small bounce from the 50 per cent retracement support level has turned the commodity channel indicator bullish. Let’s see if this will do the trick so that cable can re-test increasingly important trend line resistance. Note that the Japanese yen is once again looking set to test the also important 110.00 level.
SHORT TERM TRADER: Small long at 1.2415; stop below 1.2355. Target 1.2600.
POSITION TAKER: Square.
EURO/US DOLLAR
Such a frustrating mess. Today the so-called G7 foreign ministers meeting in Lucca have been joined by those of Saudi Arabia, Turkey and UAE.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Friday’s proper spike high has seen the MACD weaken even further yet political sabre-rattling has propped up gold prices.
SHORT TERM TRADER: New short at 1254; stop above 1275. 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.
