Monday, July 11, 2011

Finding Support Before the Next Rally - Market Analysis for July 11th 2011 by Singaporeseeds

Daily chart for Dow

Daily chart for S&P

Daily chart for NASDAQ

The latest rally in the markets had reached an end on Friday. This was indicated by Demark’s sequential system. We should see the markets find some support over the next few days before continuing its move up.
Support should come around its 50 day moving average at 1,310 for S&P, 12,300 for Dow and 2,315 for NASDAQ.

Daily chart for the dollar

The dollar is still in a wedge now. The side where it will break out from will determine its movement over the next few weeks.

Daily chart for Gold

Daily chart for Silver

Seasonally, Gold bottoms in late July and will rally into September so we are approaching the most bullish season for gold. However the triple top resistance with a bearish divergence in MACD and RSI will still weigh heavily on gold. We’ll see how gold behaves over the next few weeks before we decide. However I will be looking for bottoming signs for both gold and silver over the next few weeks.

Daily chart for Crude Oil

Mid to end July is seasonally a bullish period for crude oil. This coupled with the bullish divergence in MACD and RSI indicates that we should see a short rally in crude oil over the next few days.
I’m expecting crude to rally to 45.6 by August 2011.

Daily chart for Natural Gas

Natural gas is still in a slump. However we can see increasingly more bullish bets entering the market over the last few weeks. As I’ve mentioned many market analyses ago, this is a long term bullish play.

Daily chart for Cattle (COW)

The ETF for cattle futures is COW. This follows the futures price for cattle livestock. The recent shortage of cattle supply coupled with rise in feed costs (rise in grain costs due to the numerous crop-devastating floods around the world) will be a huge factor in keeping cattle prices up.
Seasonally mid June to October is a bullish time for cattle futures. Target at the April highs at 33.09 by mid August 2011.

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