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Germany warns on Brexit

DAX 30

Strange chart pattern as we revert to tiny daily ranges around 12000. MACD bearish for most of this month.

SHORT TERM TRADER: Short at 12025; stop above 12125. Target 11600, maybe 11400.

POSITION TAKER: Square.

FTSE 100

Oops! Scrambling to try and hold on to trend line support with another hanging man candle yesterday. Nevertheless momentum on the daily chart has turned bearish.

SHORT TERM TRADER: Square.

POSITION TAKER: Small short at 7300; stop above 7450. Target 6650.

S&P 500

Bouncing from second trend line support but the MACD is decidedly bearish. Expect more consolidation above this line again today.

SHORT TERM TRADER: Square.

POSITION TAKER: Small short at 2335; stop above 2405. Target 2150.

BRITISH POUND/US DOLLAR

Trading at some of the higher levels since October and post-Trump victory. Just in time for today’s launch of the new silver and gold coloured twelve-sided pound coin. Weekly closes above 1.2600 might add to bullish pressure and one above 1.2700 would constitute a major upside break.

SHORT TERM TRADER: Square.

POSITION TAKER: Square.

EURO/US DOLLAR

Having retraced almost 61 per cent of the post-Trump slump surely it’s time for some to go back to the drawing board. A weekly close above 1.0800 would constitute a significant break.

SHORT TERM TRADER: Small long at 1.0865; stop below 1.0700. Target 1.1075.

POSITION TAKER: Square.

GOLD

Almost overbought as we trade back up close to February’s high. Over the weekend thieves managed to break into a Berlin museum and steal the biggest gold coin in the world. Known as ‘the big maple’ because of the leaf on one side and the queen’s head on the other, it is 3 centimetres thick and 53 in diameter, weighing exactly 100 kilos. Assume they just rolled it out.

SHORT TERM TRADER: Square.

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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