Today, travelling in an arc across the United States, one will be able to see a total eclipse of the sun – the first in one hundred years to sweep the whole nation.
Eclipse viewing glasses have sold out at many retailers because an estimated 200 million people are within a day’s drive from its path of totality. In the rest of the world today will be a new moon, a ‘black’ on eat that which I understand has something to do with the number appearing in one calendar month.
*This article previously contained an inaccurate reference to a Financial Times story about Linklaters and Barclays.
DAX 30
Consolidating neatly below horizontal resistance at 12345 and above first Fibonacci retracement support at 11955.
SHORT TERM TRADER: Small short at 12225; stop above 12355. Target 11550.
POSITION TAKER: Short at 12175; stop above 12355. Target 11500.
FTSE 100
Last week’s dramatic dragonfly doji/shooting star has set up the conditions for a serious test and potential slump below horizontal support at 7300that has held since early May.
SHORT TERM TRADER: Took profits on Friday’s close but plan to re-sell on a daily close below 7300.
POSITION TAKER: Short at 7300; stop above 7460. Target roughly 7000.
S&P 500
A shooting star candle last week should set up for a test of pivotal horizontal support at 2400 either this week or the following one (a long weekend in the US for Labour Day on the 4th September) which for many will mark the end of summer.
SHORT TERM TRADER: Short at 2468; stop above 2475. Next target is pivotal support at 2400.
POSITION TAKER: Will sell on a weekly close below 2400.
BRITISH POUND/US DOLLAR
Holding slightly nervously around 1.2875 as we wait for further papers spelling out the UK’s ambitions for leaving the EU.
SHORT TERM TRADER: Small long at 1.2885; stop below 1.2800. Target 1.3100, maybe 1.3270/1.3300.
POSITION TAKER: Square.
EURO/US DOLLAR
Many will be watching to see what the ECB’s Mario Draghi will have to say at the central bankers’ meeting at Jackson Hole 24-26 August. To what extent is he worried about an appreciating euro and when he will make monetary policy less accommodating.
SHORT TERM TRADER: Small long at 1.1745; stop below 1.1600. First target 1.1890 but in truth looking for a burst to a new high for this year.
POSITION TAKER: Square.
GOLD
A fairly large doji on the weekly chart denotes uncertainty at current level – an area that has capped since April. Die-hard pundits banging on about the need to own gold in times of war.
SHORT TERM TRADER: Stopped out of my short position on Friday’s massive spike high. Oh dear.
POSITION TAKER: Square.
Nicole Elliott is a long standing Member of the Society of Technical Analysts and has taken over 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.
