Ratings agency Moody’s today said that India’s second biggest state lender, the Punjab National Bank, was under review for a downgrade. This follows the bank’s announcement on Wednesday that its branch in Mumbai had been targeted by businessmen, aided by branch staff, who received loans worth $1.77 billion which had avoided the normal approval channels. Shares in the bank are off by 31 per cent since last week’s announcement.
Today Venezuela launches its version of a crypto-currency, the ‘petro’. Backed by blockchain technology it’s said to be worth a barrel of the nation’s oil. It is unclear whether buying it might break current sanctions against the country.
DAX 30
Consolidating between the horizontal chart level at 12875 and trend line support since early 2016 – and no longer oversold. Taking its time but we still feel that the next step will be lower.
SHORT TERM TRADER: Small short at 12535; stop well above 12600. Target 11700.
POSITION TAKER: Short at 12650; stop above 12875. First target 12050, then probably more.
FTSE 100
Another index that is no longer oversold and is consolidating in a rather unusual inverted flag formation.
SHORT TERM TRADER: Small short at 7180; stop well above 7300. Target 7000.
POSITION TAKER: Short at 7250; stop well above 7350. Target the 6675 area.
S&P 500
One of several US indices that’s struggling at the Fibonacci 61 per cent retracement level after the slump from a record high. It is also no longer oversold.
SHORT TERM TRADER: New short at 2725; stop above 2825. Target 2555.
POSITION TAKER: Short with a stop above 2750. Target 2455 – and maybe a lot more.
BRITISH POUND/US DOLLAR
As David Davis’ Brexit bonanza hits Vienna today, where they have a right-leaning Eurosceptic coalition government, a poll published in Germany’s Bild newspaper yesterday shows the anti-immigrant AfD party having more support than the Social Democrats – taking it to second place after Angela Merkel’s CSU.
SHORT TERM TRADER: Small long at 1.3885; stop below 1.3900. Target 1.4200.
POSITION TAKER: Long at 1.3930; stop below 1.3900. First target 1.4275, then 1.4650.
EURO/US DOLLAR
Not enough momentum to get things going. Yesterday the ECB asked Latvia’s central bank to impose a moratorium and freeze all payments from ABLV bank – the one accused by the US of institutionalised money laundering.
SHORT TERM TRADER: Looking to re-buy.
POSITION TAKER: Square.
GOLD
Retreating from long term trend line resistance again but the commodity channel index did not measure it topping.
SHORT TERM TRADER: Square.
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.
