Today the British government launches a new strategy for UK industry; it’s been a while in the making as Mrs May first mooted the idea in January. Some were obviously in the know because coincidentally US pharmaceutical firm Merck today announced that London will become its new UK headquarters. The exact site, opening in 2020, has yet to be decided but will house 150 researchers and another 800 staff. MD UK & Ireland Louise Houson said, ‘we believe London to be a unique bioscience centre of excellence and a key component of the established golden triangle for academic science London-Oxford-Cambridge’.
Seismologists today raised the risk of a volcanic eruption from Mount Agung on Bali to the highest level. The airport is closed and thousands have been evacuated from the area. Cold lava is flowing down the mountain and rain this morning has flooded paddy fields at its base.
DAX 30
Holding Fibonacci 38 per cent retracement support for a second consecutive week with a bland little doji style candle last week. No longer overbought on the RSI note how the MACD has fallen for three consecutive weeks.
SHORT TERM TRADER: Short at 12960; stop above 13225. First target 12700.
POSITION TAKER: Square.
FTSE 100
Another chart with a fairly irrelevant little doji type candle last week. Perhaps this is the sort of thing we should get used to as we prepare for Christmas and year-end holidays.
SHORT TERM TRADER: Short at 7470; stop above 7480. Target 7125.
POSITION TAKER: Short at 7375; stop above 7465. Target 7125.
S&P 500
The highest ever weekly close on precious little volume. Great! Still ridiculously overbought.
SHORT TERM TRADER: Short at 2565; stop above 2615. First target 2515 and more realistically 2460.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
This is not the pound getting stronger but the US dollar getting weaker. Cable’s up 8 per cent so far this year, Asian currencies up by 7 to 10 per cent, and the Mexican peso leading with a 13 per cent gain.
SHORT TERM TRADER: Square.
POSITION TAKER: New small long on Friday’s close above 1.3300. Long at 1.3325; stop below 1.3200. Target 1.3600.
EURO/US DOLLAR
Very odd with a second strong weekly gain yet momentum is not really bullish. This is called divergence and flashes a warning; no point getting too gung-ho.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Very odd with another hanging man candle last week yet holding above Fibonacci 38 per cent retracement support. Zero momentum.
SHORT TERM TRADER: Short (and a little worried) at 1281; stop above 1300. Target 1260.
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.
