Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia. He runs training, analysis and resource workshops for retail and professional financial market traders involved in stocks, CFDs, warrants, derivatives, futures and commodities in China, Malaysia, Singapore and Australia. He has his own trading company, guppytraders.com. He is a special consultant to AxiCorp.
A combination of chart features paint a bearish picture for Euro Stoxx 50.
As much as many traders think gold should go up the weekly chart of Comex gold suggests there are some serious barriers to a price rise back to $1,750 an ounce or $1,850.
The Dow retreat is part of a new downtrend with initial downside targets near 11,300.
The acceleration and spread of the Greek contagion has the potential to drag the Euro below $1.19. It is no longer an unthinkable outcome.
The two notch debt credit trading downgrade for Spain by S&P, confirmation of continued European growth problems and poor job numbers in the U.S. have not been enough to create a downtrend in the oil price. Chart analysis shows $125 as the next target.
There are bullish factors for gold like a weakening dollar and U.S. stocks, but there are also important resistance features limiting the upside to $1,800/oz.