Breakouts from consolidation ranges have always been powerful. The longer the time spent in the consolidation range the stronger the breakout is. Lumber is a perfect example of a range breakout where price has been consolidating for almost a year. Price could have breached the lower boundary of the year-long consolidation at 213 and also violate the […]
In the previous update I discussed the strength in the energy sector and analyzed Brent Crude Oil. Price of Brent Crude is breaking out of a long-term symmetrical triangle. 3 year-long uptrend resumes in the parallel trend channel and price is clearly above the 200 day moving average. In this update I’m looking at other energy […]
While Greek debt, spending cuts and their negotiations with European leaders continue to occupy the headlines, I thought an update on Euro Zone government yields would be timely. How bad is it out there? Will Greece default? Are Portugal yields more worrying than the Greek situation? These are the questions investors are trying to answer […]
When analyzing long-term charts, 200 day moving average is extremely helpful in deciding the direction of the long-term trends. Supported by the 200 day moving average, 14 period RSI on the weekly scale is a good confirmation of that trend. In the previous posts you’ve come across the term “road map” referring to the 200 day moving average. Price can move […]
After strong performance from equity markets and commodities and a positive start for 2012, indices are challenging their minor/major resistance levels. One of those indices is the Dow Jones Industrial Average now testing 12,750 levels, a resistance now being challenged for the third time. Since October 2011, Dow Jones Industrial moved from 10,500 levels to […]
The beauty of technical analysis is that it helps us compare current price movement with past price movements and layout a trading strategy depending on the historical price movements. Chartist have developed an extensive list of chart patterns throughout the years. For those interested in learning chart patterns Thomas Bulkowski’s The Encyclopedia of Chart Patterns is […]
In December I wrote about Soy Meal. A commodity that I’ve often traded and analyzed. Agricultural commodities are perfect for traders who are starting with a small capital. Their low margins allow you to trade 1-2 contracts per trade. Unlike Gold, Silver or even Crude Oil that have high margin requirements, agricultural commodities are better […]
Here is an interesting illustration on a commodity that we consume almost every day. I have always been a coffee fan. Of course born and raised in Turkey, Turkish coffee has been a part of our daily life. I start and finish my day with coffee and consume 4-5 cups per day. When I saw […]
Looks like in the short-term Euro is due for a rebound. With the positive news flow from Euro Zone regarding the latest debt sales and restructuring of the Greek debt, U.S. dollar might pullback further helping the RISK ON trades to gain ground. I’ve mentioned in my previous updates that the technical outlook has turned positive […]
On January 6th I discussed government bonds for Germany & U.S. and drew attention to negative divergences on momentum indicators. U.S. 10 Year T-Notes and Euro Bund prices have generated negative divergences as they approached their previous high levels and both government bond prices tested their intermediate term resistance levels with negative divergences. The battle between bulls and […]
