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.
There is a high probability gold will test the $1,460/ounce support level before developing a slower uptrend rebound. If margin changes continue to flow through the system, then the lower targets between $1,420/ounce and $1,440/ounce are the valid support level
The collapse in the silver price from $49 an ounce to below $36 is a harbinger of collapses in a wider range of commodity prices. It is the end of speculative bubbles that have been building for several months. The collapse is triggered by changes to the way the trade is executed. Look for downside in silver to around $31/ounce.
The oil price is the foundation for inflation. The NYMEX oil chart shows the next target for oil is near $124. The chart also shows a new pattern of price behavior. This pattern often ends with a sudden price retreat and Osama Bin Laden’s death may be enough to create these conditions.
The technical analysis of the euro-dollar suggests further strengthening of the single currency will the next resistance level at $1.49.
That the market will fall, and fall rapidly is a given. The key question is how far the market may fall before it finds support. The reaction to the Kobe earthquake provides some clues.
The Nikkei has resumed its breakout uptrend, after dropping quickly on Donald Trump's victory.
The current downside target is $1,180. Failure to hold at this support level sets a target near $1,050.
Rather than trade gold there are more effective and profitable ways to trade this rebound.
Its too early to know which direction the Aussie will break but when it does, there's a high probability it will move towards targets.
Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia.