Friday, 28 June 2013

Was it a genuine support break?

As I was telling in my previous posts, I don't think the recent break of the support lines on all indices, commodities and FX pairs was a genuine one with natural market forces. Ben's speech caused a selling spree which broke the channels prematurely but the markets should ultimately reach their targets no matter what. We can see this on WTI below. I showed the "Ben effect" with red ellipse. If the recent break of the red support line was a genuine one, the retest of it would have caused at least a pause or a bounce back down. But... there are no signs of a pause and it is going straight through it. I expect it will reach its ultimate target which is the orange triangle support that I showed here.
Last time I posted on Natgas here, it was breaking up the red strong resistance. After a good rise now it is testing that broken resistance and it may well play as support here. I think it is a good level to join the natural gas trade. Hope it helps.

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