Monday, September 13, 2010

WMA Part II - So much for the spooky rally stalling - Trading week of 13th to 19th Sept 2010

The USD weekly charts suggests that the downtrend is not quite over and is resuming. Similarly, today’s price action on the USD is very bearish with a sudden downshift of the USD futures. Indicators for both weekly and daily are rolling over to bearish tones.

SPX / S&P500
The SPX/SPY (S&P500) looks very bullish, especially for September. The weekly chart has registered a higher low, with technicals looking bullish. The daily chart supports that view and is having a nice bull run at the moment. The charts look very bullish but I am expecting a retracement to set in soon before continuation of the trend.

/GC / Gold
The Gold futures weekly chart is in the midst of a rally that appears to have stalled from making a higher high although it has been trudging along a nice uptrendline. Bearish divergences indicate an imminent correction to the 1000/1100 level. The daily chart has broken its uptrendline and is overbought with a mild bearish divergence. This signals a correction in place.

/CL / Crude
Crude weekly chart is about to turn bullish after a retracement and consolidation. The crude season would be starting soon. The daily chart has broken above the Fibonacci price and time zone in a bullish manner. Keeping above this level for the next two to three days would seal the uptrend forming.

The MadScientist – 14 September 2010

Note: Any material posted here is of my sole opinion, and my opinion may differ from others. It is definitely NOT a solicitation to do anything else as a consequence of reading this material. The material presented here is intended for educational purposes only.

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