DAX 30
Managing to hold ever so close to the record high and the RSI is almost overbought.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Slipping below the 50 per cent retracement resistance level and closing just below the neckline of a head and shoulders top. However, the MACD is no longer bearish, evidence of divergence.
SHORT TERM TRADER: Small short at 7265; stop above 7315. First target 7100.
POSITION TAKER: Small short at 7300; stop above 7350. Target 6650.
S&P 500
Holding just under the record high as the commodity channel index turns down and President Trump celebrates 100 days in office tomorrow.
SHORT TERM TRADER: Square.
POSITION TAKER: Small short at 2335; stop above 2405. Target 2150.
BRITISH POUND/US DOLLAR
Struggling rather more than we had expected at this year’s high at 1.2905. With a long weekend ahead for many (May 1st holidays), and an EU leaders’ summit thrown in too, the chance for an upset is high. We still believe that the line of least resistance is a short covering rally for cable.
SHORT TERM TRADER: Small long at 1.2785; stop below 1.2700. Target 1.3200.
POSITION TAKER: Will go long on a weekly close above 1.2900.
EURO/US DOLLAR
Bunching up in a tight little range and looking as though it will try to break out. While the commodity channel index is bearish we shall stick to our original idea that we will fill the gap created last weekend. However, on a weekly close above 1.0900 we would seriously consider reversing out position and buying the euro against the US dollar.
SHORT TERM TRADER: Tiny short at 1.0885; stop above 1.0950. Target 1.0600.
POSITION TAKER: Square.
GOLD
Disappointingly slow work underlining the ingrained propensity for people to favour precious metals in anxious times.
SHORT TERM TRADER: Short at 1271; stop above 1280. 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.
