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OPINION

Brexit talks start in June

Brexit talks start in June
April 20, 2017
Brexit talks start in June

DAX 30

Yesterday’s little shooting star/doji candle following Tuesday’s bearish engulfing one has increased bearishness in the MACD. This hints at a test of trend line support this week.

SHORT TERM TRADER: Square.

POSITION TAKER: Square.

FTSE 100

Consolidating at this year’s lowest levels with barely an attempt at a bounce. A MACD at its most bearish since January suggests that another sharp sell-off next week is possible.

SHORT TERM TRADER: Will sell on a weekly close below 7100.

POSITION TAKER: Small short at 7300; stop above 7350. Target 6650.

S&P 500

Yesterday’s attempt at a tiny bounce was capped by the second trend line (which was support earlier in the year but has now turned into resistance) culminated with a shooting star/doji candle; another bearish little sign to add to a decidedly bearish MACD.

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

Consolidating in what might be a pennant formation following Tuesday’s rush. If we were to surge higher again next week then perhaps bullish momentum would increase to levels not seen so far this year.

SHORT TERM TRADER: New small long at 1.2785; stop below 1.2500. Target 1.3200.

POSITION TAKER: Looking to go long on a weekly close above 1.2900.

EURO/US DOLLAR

Limping along behind other major currencies are nerves fray ahead of Sunday’s French Presidential election.

SHORT TERM TRADER: Square.

POSITION TAKER: Square.

GOLD

A small bearish engulfing candle yesterday against trend line resistance hints that we might end up with a weekly one too.

SHORT TERM TRADER: Looking to re-sell.

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.

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