Escalating tensions in the Middle East, caused by the US imposition of tighter sanctions on Iran, have seen four UAE commercial vessels sabotaged and two Saudi tankers attacked, reports the Financial Times. These happened at a tanker refuelling station close to the UAE’s territorial waters in the Gulf of Oman. This is also close to the Straits of Hormuz which Islamic Republic hardliners threatened to attack to disrupt shipping in this busy channel. Stock markets in the region sold off today and yesterday.
Guy Verhofstadt, the European Parliament’s Brexit negotiator, aired two documentaries on UK terrestrial TV last week and was in a bus at Westminster over the weekend drumming up support for centre-left parties at this month’s EU elections. This, as the latest opinion poll shows Nigel Farage’s bran new Brexit Party polling higher than both the Conservatives and Labour put together (34 per cent versus 11 and 21 per cent respectively, Lib Dems on 12 per cent). The lead is perhaps due to the fact they are the only party actively campaigning for the elections.
DAX 30
Last week’s little hanging man candle bang on the neckline of the massive head and shoulders that’s been building since early 2017 completes the irregular three-candle evening star combination. Bullish momentum dropped right back to where it was late February on this move, causing this morning’s re-test of the neckline. A close below here should increase downside pressure.
SHORT TERM TRADER: Will sell on a close below 11880 today.
POSITION TAKER: New short at 12110; stop above 12285. Target 11000.
FTSE 100
All bullish momentum’s been wiped off the weekly chart with last week’s large doji – which denotes indecision. The index has now given up almost 38 per cent of this year’s gains and the chart looks increasingly like yet another failure at the 7400-7600 area that’s capped most of the time since January 2017.
SHORT TERM TRADER: Short at 7245; stop above 7400. Target 7020.
POSITION TAKER: New short at 7275; stop above 7400. Target 6875.
S&P 500
Pretty much all bullish momentum’s flown out the window and price action of the last fortnight looking increasingly like an interim top. This is the third in a series of highs that form what we believe will be an important broadening top formation that’s been building since early 2018.
SHORT TERM TRADER: New short at 2880; stop above 2960. Target
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Trapped in a little cul-de-sac of its own making.
SHORT TERM TRADER: Long at 1.3040; stop below 1.2960. Target 1.3300.
POSITION TAKER: Square.
EURO/US DOLLAR
A sad little specimen as Hungary’s Orban calls on President Trump today.
SHORT TERM TRADER: Long at 1.1190; stop below 1.1140. Target 1.1400.
POSITION TAKER: Square.
GOLD
Crashingly boring for a third consecutive week.
SHORT TERM TRADER: Short at 1283; stop above 1290. Next target 1260.
POSITION TAKER: Short at 1292; stop above 1290. Target 1185.
