DAX 30
As we thought yesterday immediate trend line which became resistance, increasing the MACD’s bearishness. Yesterday’s large Marabuzo candle is another warning sign that this market is unstable at current levels.
SHORT TERM TRADER: Will sell on a weekly close below 12535.
POSITION TAKER: Square.
FTSE 100
Yesterday’s close below both trend line and horizontal support completes a rounded top chart pattern which has a first measured target at 7200.
SHORT TERM TRADER: Small short at 7542; stop above 7500. Target 7200.
POSITION TAKER: Will sell on a weekly close below 7400.
S&P 500
Three consecutive large daily moves where the candles are getting increasingly bigger underlines this market’s instability at the moment. Momentum bearish again and let’s see if we end the week, the month, the quarter and the half year at any significant chart level.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Three consecutive decent sized bullish candles are a formation known as three white soldiers. A weekly close above 1.3050 would constitute a significant break higher targeting 1.3400/1.3450.
SHORT TERM TRADER: Will attempt a small long on a close today above 1.3050.
POSITION TAKER: Square.
EURO/US DOLLAR
Overbought as we rally to a new high for this year. Note that on Wednesday EU budget commissioner Gunther Oettinger laid out the black hole that will be created in their budget on Brexit.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Momentum is only marginally bearish as this dreary little market plods on. Note that futures volume in Tokyo is currently just one quarter of peak a decade ago.
SHORT TERM TRADER: Square.
POSITION TAKER: Small short at 1262; stop above 1270. 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.
