Sunday 2 June 2013

Start the week with these charts

SP500 broke the blue support just before the markets close on Friday. This may turn into a bull flag something like the orange channel, which is totally hypothetical right now. It first needs a hit & bounce at the bottom of it. Otherwise, it is wonderful news for the bears because this decline may be the start of something big which will take us below 1600.
I posted about RUT on Friday and that channel is broken down. Similar to SP500, RUT may form a bull flag shown with blue. Another hit at the lower band of the red channel would be a good opportunity to go long. I will be watching for these possibilities closely to keep you posted.
Euro resistance I posted on Friday turned the prices down. If it turns up again, it may hit the blue declining channel for the fourth time which is the golden hit. That may take the prices towards 1.33-1.34. However, I tend to think that the red channel will take a hit to the lower band for the fourth time and break. This would open the way to much lower prices. Despite all those bad news, terrible fundamentals and incompetent politicians since 3 years in the Euro area, it is hard to understand what's keeping Euro at these levels. It has to give in at some point and this may be it.
British pound is still in its declining channel and I think the correction is almost finished here. It may still hit the resistance which I marked with the blue ellipse but this should be the final touch before resuming the decline. The green major channel is in charge here which should take us to 1.40-1.42 levels.
Last but not least is AUDUSD. The declining red channel is mature and well established. The middle resistance is remarkable which has not been broken upwards yet. Another hit at the lower band would give a good opportunity to go long with a tight stop loss. A safer option is to wait until it is broken upwards. Hope it helps.

1 comment :

  1. I think we are very close to the bottom or we already made it.

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