DAX 30
Ahead of what might be a rather fraught G20 leaders’ summit in Hamburg Friday and Saturday the Dax index is consolidating at the bottom of what might be an inverted flag formation. Momentum is more bearish than it has been so far this year and the pattern’s measured target would be around 12000.
SHORT TERM TRADER: Small short at 12380; stop above 12735. Target 12000.
POSITION TAKER: Square.
FTSE 100
Consolidating neatly under what had been horizontal support and now looks set to become resistance. The MACD has been flashing red for a whole month.
SHORT TERM TRADER: Small short at 7542; stop above 7400. Target 7200.
POSITION TAKER: Short at 7325; stop above 7455. First target 7125.
S&P 500
Much media hype as yesterday the Dow Industrials set a new intra-day high. This was on what’s known as the driving weekend in the US – the weekend closest to the 4th July holiday. The S&P’s little shooting star yesterday has kept momentum bearish. A lot of perma-bulls are making their voices heard.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Retreating just ahead of May’s high as Friday’s hanging man candled had hinted at. Generally we see dips as potential buying opportunities for another attack at 1.3050 resistance some time over the summer.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Retreating a tad from this year’s high as, almost by Royal decree, President Macron commandeers all members of both houses of parliament to a state-of-the-union type address in Versailles.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Breaking trend line support in one fell swoop and back down at the early May lows. Bloomberg reports that Goldman Sachs is reviewing the future of its commodities arm in the light of low volatility and falling revenues.
SHORT TERM TRADER: Small short at 1235; stop above 1245. Target 1200.
POSITION TAKER: Small short at 1262; stop above 1260. 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.
