Thursday, March 24, 2011

Ice Hole Failure or Not? - Market Analysis for 24th March 2011 by Singaporeseeds

Daily chart for Dow

Daily chart for S&P

Daily chart for NASDAQ

I’m posting this market analysis on a Thursday evening because I’ve just returned from a meeting in Shenzhen and blogspot is banned in the country. Anyway I wanted to post about the high possibility of the market bouncing back to test resistance at the 50 day moving average. Seems like today’s the day. We will see if the market can break pass it or will it form a ice-hole failure and continue the downtrend.
I believe the market may bounce around for a couple of days at around the 1300 level on the S&P before rallying back up the test the high of the year at 1345.

Daily chart for the Dollar (UUP)

UUP is forming a bullish divergence on daily for both MACD, Stochastics and RSI. (red lines in bold) I believe UUP is nearing the end of its downtrend and a rally may begin sometime next week. I am keeping this one in my watchlist.

Daily chart for Gold (GLD)

The sell signal on GLD just saw gold to drop to its 50 day moving average before bouncing back up to form a new high at 1448. We should see gold consolidate over the next few days. Whether it will continue its never-ending rally will depend on the events that will unfold over the next few days.

Daily chart for Silver (SLV)

Silver should be following the movement of gold over the next few days. We should be seeing a consolidation in silver before its next leg up.

Daily chart for Crude Oil (USO)

Crude is starting to form a bearish divergence on daily but the rally has not ended yet. We should see another week or two of bullish movement in Crude before it would consolidate.

Daily chart for Natural Gas (UNG)

The first phase of the rally in UNG is over. This has brought UNG to above its 50 day moving average. Now the 50 day moving average (red line) has to act as support for UNG before we can see more bullish movement and higher prices in Natural Gas futures.

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