Tuesday, May 31, 2011

Off it goes! - Market Analysis for 31st March 2011 by Singaporeseeds

Daily chart for Dow

Daily chart for S&P

Daily chart for NASDAQ

Quote from last week:
“We are still looking at a stimulus to bring the markets to its next leg either up or down. As long as the S&P does not break support at 1320 I’m going to be upwardly biased with target at 1425 for the S&P.”
The market hit Fibo trendline support on Tuesday and moved along the support until Friday, when I bounced up and closed above the 50 day moving average. S&P closed below 1320 for 2 days but could not hold below and is now way above. Market futures are now moving up, indicating bullishness and the start of the next rally. However I do not think this rally will last. First target at 1,366 then 1,425 on the S&P.

Daily chart the Dollar (UUP)

The dollar dropped below its 50 day moving average on Friday. Seems like the dead cat bounce is over. Target at 19.75 for UUP.

Daily chart for Gold (GLD)

Analysis for gold (GLD) is still the same.
Quote from last week:
“Gold did a big bullish candle bounce on top of its 50 day moving average on Friday. This is a very bullish sign. Target at 156.”

Daily chart for Silver (SLV)

Silver (SLV) is approaching resistance at 37.48 and then 38.20. It has to either gap or break above these two levels before it can continue on its rally. This I think will happen over the next 2 weeks.

Daily chart for Crude Oil (USO)

The bullish hammer did not happen as the bullish candle Monday did not happen last week. USO did a consolidation for the rest of the week. We should see a bullish pattern sometime this week.

Daily chart for Natural Gas (UNG)

This is it. UNG gapped above its 50 day moving average and is now just below its 200 day moving average. With the two most important moving averages converging soon, we should see some kind of price action this week. I’m thinking up.

Daily chart for ADM

ADM tend to show very good moving average movements. David Elliot calls it Moving Average Patterns (MAP).
I followed ADM up when it bounced off its 200 then 50 day moving averages in Jan and then down again to its 200 day moving average when it did the triple top and bearish divergence in late April. Now I think ADM had bottomed out when it bounced off a range of supports from 30.60 to 31 and also the Fibo trendline support.
Target at 34.20

Daily chart for MSFT

MSFT tend to show very good trendline and wedge movements. However I entered this one based on the bullish divergence and Chris’s trading system. I’m expecting MSFT to move back up to test its trendline at 25.70.

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