Continued record highs for the Dow this year should not discourage investors from going long, says technical analyst Daryl Guppy » Read More
Kospi strength remains intact despite the pullback, suggesting there is little to worry about North Korea risks, Daryl Guppy writes. » Read More
The trend is bullish despite a pause for the Shanghai Composite index, technical analyst Daryl Guppy says. » Read More
Has the upward momentum pressure for oil prices disappeared? The NYMEX oil chart seems to have done very little in the past few weeks with the price stuck in a trading range near $104 to $105.
The Dow Index is slipping below 13,000. The U.S. dollar Index is hovering near 80 in a weak symmetrical triangle pattern. The euro/dollar continues in a downtrend with more weakness developing. All these factors should be bullish for gold.
The euro-dollar weekly chart is dominated by a strong and well-established downtrend that has been in place starting May last year, from the high at $1.49. This downtrend line was tested in September with a high near $1.45 followed by a retreat. The current rally to near $1.34 has broken from the trend line area. This behavior suggests continuing weakness in the euro. There is no evidence that the euro can strengthen and move above the established downtrend line.
The dollar-yen chart shows a high degree of success in the
The Australian market has been trapped in an investment-numbing sideways trend for the past six months. The resistance level at 4,300 on the S&P ASX 200 has proved almost impossible to crack despite frequent attempts. The breakout above 4,300 is exceptionally important for two reasons.
The defining feature of the Dow Jones Industrial Average is the extended support/resistance trend line, which is a projection of the head and shoulder pattern that developed in the middle of 2011. This is the support feature, which will help define the nature of the continued rise in the Dow.
The NYMEX weekly oil chart has developed a mid-trend inverted head and shoulder continuation pattern. This suggests that the uptrend of the past few weeks has a high probability of continuing. The head and shoulder pattern is also used to calculate price targets using a measured move.
Fine Cotton was the name of an unimpressive racehorse in Australia. The poorly performing horse was replaced with a much superior look-alike substitute, which won a major race at long odds. The same switching tactics have been seen with the Indian government position on cotton export sales and the results are very similar. It has little impact on the fundamentals of the market.
The Apple chart shows an unsustainable rally. This doesn’t mean that traders cannot make money, but it does suggest that investors buying in the current market will have to ride a short-term loss before the long-term trend carries them into profit.
The Shanghai Index has staged a powerful breakout from a severe long-term downtrend. The breakout overcame two significant resistance features. The first feature was the strong resistance level near 2,300. The market consolidated around this level as the breakout developed.