DAX 30
Slightly unstable this week and now struggling with the bottom of the right-angled triangle as prices push into the apex of this pattern.
SHORT TERM TRADER: Tiny short at 12654; stop above 12900. First target 12300.
POSITION TAKER: Square.
FTSE 100
Another index with a dose of the jitters as we test the neckline of the little head & shoulders top at the record high. The MACD has been decidedly bearish so far this month so let’s see whether we settle below 7400 today and complete the formation.
SHORT TERM TRADER: Small short at 7542; stop above 7600. Target 7300, maybe 7200.
POSITION TAKER: Will go short on a weekly close below 7400 for a quick drop to 7200, first target.
S&P 500
Spectacularly neatly holding first retracement support at 2420 though the MACD has been marginally bearish all week. Note that today is quadruple witching in S&P 500 futures and options with JPMorgan estimating $1.3 trillion to run off.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
A doji yesterday against what had been horizontal support at 1.2770 and has now become resistance makes things rather tricky at this point. MACD still clearly bearish.
SHORT TERM TRADER: Small short at 1.2690; stop above 1.2830. Target 1.2400.
POSITION TAKER: Square.
EURO/US DOLLAR
A consistently bearish MACD has dragged prices through trend line support though they are currently holding first retracement support. Let’s see if we complete a small rounded top today with a close below 1.1100.
SHORT TERM TRADER: Will go short on a weekly close below 1.1100; stop above 1.1300. Target 1.0900.
POSITION TAKER: Square.
GOLD
Wednesday’s shooting star sent the market down another little notch yesterday and momentum is now bearish. Note that Bitcoin has slumped spectacularly after all and sundry were recently hailing its break above the psychological $3000.
SHORT TERM TRADER: Small short at 1271; stop above 1275. Target 1220-1230.
POSITION TAKER: Small short at 1262; stop above 1280. Target 1200.
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.
