While equities have performed well, commodities have shown relative weakness. From the commodities, agricultural have significantly lagged the rest. The chart below analyzes Corn price over the past 3 months. Sideways consolidation is taking place above the 200-day moving average, which acted as a support for the past 3 months. Boundaries of the possible symmetrical triangle formation are 710 and 760. Failure […]
Few days back I gave POLAND WIG20 Index as an example of a 2 year-long flat range breakout. We are seeing global strength in equities and indices are breaking out of long-term consolidation patterns. Today I’m looking at Czech Republic Prague SE Index. Symmetrical triangles are usually formed as continuation patterns. However, it is always better to wait for a […]
Another perfect example for a flat range breakout can be seen on the WIG 20 Index. Poland’s WIG 20 Index cleared the 2 year-long resistance at 2,450 levels. With last week’s decisive breakout above the strong resistance WIG 20 now targets 2,800-2,900 area. Technical chart pattern can be either analyzed as a rectangle or a double […]
Lengthy consolidation periods are usually followed by strong breakouts. From those breakouts, flat ranges are more reliable. Though one should always be prepared for a false breakout. Friday’s price action on the CHF/USD was strong and the cross rate has clearly breached above the horizontal resistance at 1.085 levels. Since mid-September CHF/USD has been consolidating […]
After reversing from 35 levels in the beginning of 2011, Sugar price spent the past two years in a correction by pulling back to its long-term trend line. 9 year-long trend support met the price at 19 levels. As price reached the long-term support, downward momentum weakened and relative strength index generated positive divergences on the weekly scale […]
In November I’ve updated the Lumber chart and drew attention to the strong horizontal resistance at 327 levels. This was a 3 year-long resistance and I expected to see a pause after the strong rally. While the price took a breather for few weeks, we haven’t seen much of a pullback from the strong resistance. […]
Previous week is revised upwards by 6,000 and this week’s data on initial jobless claims skyrocketed. We have been following this chart for some time and the loss of momentum on the downside was signaling a possible reversal on the initial jobless claims. I’ve mentioned the importance of the 52-week average as a strong resistance. With […]
It’s been an exciting period watching global economies constantly trying to devalue their currencies with the aim of increasing demand for their goods and services. Financial media is covering this under “currency wars”. Weak currencies are good for economies because countries will be able to export more… Though let’s not forget that there is a fine balance […]
Rising wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. Rising wedges slope upwards and have a bearish bias. The loss of upside momentum on each successive high gives the pattern its bearish bias. Dow Jones Industrial Average has been forming a rising […]
Tech Charts blog followers will remember the earlier analysis on Soybeans forecasting a strong directional move. Low volatility is usually followed by high volatility. Volatility does not have direction but it is cyclical. With this week’s sell-off Soybeans broke down two important technical support; the 200 day moving average and the year-long trend support. Short-term […]
