The British Society of Motor Manufacturers and Traders announced yesterday that only 1.67 million vehicles were made in the UK in 2017, a drop of 9.8 per cent from the previous year and the first annual reduction since 2009. Export demand, which accounts for nearly 80 per cent of UK car output, fell just 1.1 per cent. Meanwhile in the USA iconic motorbike manufacturer Harley Davidson said it is to close its plant in Kansas City, Missouri. Shipments hit a six-year low as its customer base ages.
President Trump’s first State of the Union address yesterday in Congress was intended to bring the two parties ‘together, building a safe, strong and proud America’. He then added, ‘we have created 2.4 million jobs, unemployment claims have hit a 45-year low, small business confidence is at an all-time high. The stock market has smashed one record after another’. Oh dear!
DAX 30
Holding the 50 per cent retracement level but the MACD turned bearish nevertheless.
SHORT TERM TRADER: Tiny short at 13360; stop above 13450. Target 13000.
POSITION TAKER: Square.
FTSE 100
Yesterday’s close below 7600 completes a complex head & shoulders top that has been building so far this year. Being neat and symmetrical means it has a greater chance of meeting its first measured target at 7450.
SHORT TERM TRADER: New short at 7590; stop above 7725. Target 7450.
POSITION TAKER: Square.
S&P 500
Skidding suddenly and no longer overbought while holding first Fibonacci retracement support. The week could end up as a bearish engulfing or tweezers top.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Bouncing smartly from Fibonacci retracement support after a slightly rocky start to the day.
SHORT TERM TRADER: Small long at 1.4125; stop well below 1.4000. Target 1.4440.
POSITION TAKER: Square and looking to re-buy.
EURO/US DOLLAR
Bouncing ahead of Fibonacci retracement support and overbought again. Generally, January has not been a good month for the US dollar.
SHORT TERM TRADER: Square.
POSITION TAKER: Long at 1.2200; stop below 1.2290. First target 1.2600, then maybe 1.3000.
GOLD
Holding first Fibonacci retracement support (like the euro) but to remember when investors need to raise cash in a hurry the best assets get sold first.
SHORT TERM TRADER: Small short at 1335; stop above 1366. Target 1280.
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.
