Tonight, as Ireland faces its (potentially) worst storm in 50 years, PM Theresa May is off to Brussels for dinner with European Commission president Jean-Claude Junker and chief Brexit negotiator Michel Barnier. Not exactly a cosy fireside chat but an attempt to break the impasse ahead of the EU leaders’ meeting on Thursday where they will decide whether enough progress has been made to move on to trade deals. This follows a phone call to Angela Merkel yesterday where she is said to have asked for her help to move Brexit talks along.
Sebastian Kurz, the 31 year-old leader of the centre right Austrian People’s Party, looks set to head up his country’s parliament following yesterday’s general election. Copying much of the right-wing Freedom Party’s agenda, who are poised to return to government for the first time since 2005, a coalition between these two looks likely.
DAX 30
Inching to a new record high on Friday but not that very much higher than 2015’s high at 12411. Not as overbought as we were then or earlier this year, nor factoring in political changes in the European landscape. Let’s see how long it will take Mrs Merkel to form her new coalition government.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Not as overbought as we might be while trading very close to the record high.
SHORT TERM TRADER: Short at 7554; stop above 7600. Target 7320.
POSITION TAKER: Square.
S&P 500
Overbought as the index inches higher for what looks to be eight consecutive weeks.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
A harami candle last week – its body lying inside the previous week’s one – is known as a pregnant pause. This suggests that we are setting up for another go at the watershed area between 1.3400 and 1.3600. Note: this is against a background of potential generalised US dollar selling.
SHORT TERM TRADER: Small long at 1.3115; stop below 1.3100. Target 1.3400.
POSITION TAKER: Square.
EURO/US DOLLAR
Nothing special on the weekly chart, just consolidating clearly above what had been previous resistance at 1.1600.
SHORT TERM TRADER: Small long at 1.1770; stop below 1.1740. Target 1.2000.
POSITION TAKER: Square.
GOLD
Over the last three weeks gold has formed what is known as a morning star candlestick pattern suggesting a new interim low at 1260 is in place.
SHORT TERM TRADER: Wondering whether to try going long.
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.
