DAX 30
Gapping higher this morning so that once again it is overbought on the weekly chart as Brussels breathes a sigh of relief that Macron, it’s fan, will go through to the second round.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Bouncing from support from February’s low but keeping below the neckline of the little head and shoulders top that’s been forming since March – something we considered on TV last week.
SHORT TERM TRADER: Square.
POSITION TAKER: Small short at 7300; stop above 7350. Target 6650.
S&P 500
Another index gapping higher as financial markets breathe a collective sigh of relief that the election result was not as bad as it might have been. Maybe they’re going to try and justify this with the euro, and therefore the dollar index, being at 1.0900.
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
Certainly a change of tone last week and momentum consistently bullish for six consecutive weeks.
SHORT TERM TRADER: Small long at 1.2785; stop below 1.2500. Target 1.3200.
POSITION TAKER: Square.
EURO/US DOLLAR
Trying, but failing, to hold above 1.0900 and the highest levels set since Mr Trump’s election. This will impact the US dollar index where the euro has over 50 per cent weighting.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Retreating from long term trend line resistance and dragging down the weekly commodity channel index.
SHORT TERM TRADER: New short at 1271; stop above 1300. 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.
