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Market Outlook: Uber exits South East Asia

Grab gets a bargain
March 26, 2018

After burning through lots of money, ride-sharing company Uber has agreed to sell its South East Asian operations, with 86 million people signed up in an area with 620 inhabitants, to local rival Grab, Bloomberg reports.  In return the US-based firm will receive 27.5 per cent of the new venture while Grab also gets UberEats thrown in.

Because of an international arrest warrant issued by the Spanish government, former Catalan leader Carles Puigdemont spent last night in a German prison.  German authorities now have up to 60 days to decide whether to extradite him to Spain where he faces up to 25 years’ incarceration on charges of rebellion, rioting, and misappropriation of public funds.  Other Catalan separatist politicians face similar charges.     

DAX 30

The first weekly close below 12000 in over a year confirms that a major long term top is in place.  Very different from topping price action at this area in 2015, mind you.  Still above (badly drawn) trend line support taken from the 2009 low though.   

 

SHORT TERM TRADER:  New short at 11800; stop above 12200.  Target 11400.

 

POSITION TAKER:  New short at 11800; stop above 12400.  Target 9500.

FTSE 100

The lowest close since November 2016 is really not a good look.  It also completes a huge, irregular broadening top pattern.  Next target will be trend line support from an interim low in 2011.

 

SHORT TERM TRADER:   Small short at 7055; stop above 7100; target 6700.

 

POSITION TAKER:  Added to short position on Friday’s close at 6850; stop above 7100.  Target the 6675/6700 area.

S&P 500

A weekly close clearly below first trend line support and the market is not in the least bit oversold.  Next target ought to be the trend line from the 2011 interim low.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

Closing well above right-angled triangle consolidation at a similar level we managed earlier this year.  Hopefully bullish momentum will increase this week for a re-test of this year’s high at 1.4345.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Small long at 1.3775; stop below 1.4070; target 1.4250.

EURO/US DOLLAR

Stuck in a rut but with a little hope it might re-test the upper edge.

 

SHORT TERM TRADER:  Small long at 1.2267; stop below 1.2300.  Target 1.2500.

 

POSITION TAKER:  Small long at 1.2270; stop below 1.2250.  Target 1.2500.

GOLD

Banging up against long term trend line resistance.  Will look closely at daily candles for signs of stalling here again.  However, I am prepared to accept that a break higher is also possible if further US dollar weakness sets in.

                            

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.