Japan PM Shinzo Abe of the ruling LDP won a resounding victory in yesterday’s general election for an unprecedented fourth time putting him on track to be the longest post-war leader. As well as fiddling with the third arrow of Abenomics he hopes to review the country’s stance on the military and war generally.
In the Czech Republic, anti-establishment billionaire Andrej Babis won about 30 per cent of the vote with his new ANO party – three times as much as his closest rival, on a 61 per cent turnout. Non-binding referendums in the Italian regions of Lombardy and the Veneto on Sunday, which account for 30 per cent of the country’s economy, saw an astounding 90 per cent of those who voted in favour of further autonomy. Barcelona is bracing to see the Catalan parliament’s response to Madrid’s decision to wrest back control of the region.
DAX 30
Friday’s doji after Thursday’s hanging man candlestick have combined to create a tiny doji on the weekly chart. Instability and almost overbought on the RSI this is one to avoid or only sup with using a very long spoon.
SHORT TERM TRADER: New small short at 13045; stop above 13125. Target 12400.
POSITION TAKER: Square.
FTSE 100
A shooting star candle on Friday following Thursday’s hanging man have had negligible impact on the tiny weekly candle and demonstrable lack of progress this year.
SHORT TERM TRADER: Short at 7554; stop above 7600. Target 7320.
POSITION TAKER: Square.
S&P 500
More overbought on the RSI than any time since 2007 trading higher (to a new record) for a ninth consecutive week. Oh dear.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Consolidating in a little triangle pattern for a third consecutive week while holding just above trend line and a Fibonacci retracement level.
SHORT TERM TRADER: Long at 1.3115; stop below 1.3100. Target 1.3400.
POSITION TAKER: Square.
EURO/US DOLLAR
Rather messy as we consolidate above what had been resistance at 1.1600 yet dwindling bullish momentum means immediate trend line support gave way 4 weeks ago.
SHORT TERM TRADER: Small long at 1.1770; stop below 1.1740. Target 1.2000.
POSITION TAKER: Square.
GOLD
Almost a tweezers type interim top over the last fortnight and MACD has turned south.
SHORT TERM TRADER: New small short at 1275; stop well above 1300. Target 1220.
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.
