When I’m analyzing the long-term charts I try to combine 200 day moving average with the RSI. When combined they are helpful in giving you the big picture and the overall trend. Though there could be minor violations of the support/resistance areas, they will always generate timely warning signals in the intermediate/long-term. RSI tends to move between 40 and 80 […]
Here is a valuable analysis that would mainly interest Canadian investors and traders. Throughout the 3 years I’ve spent in Canada I’ve realized how important the crossrate has been for the Canadian economy and its export/import business. Currency advantage (when I started my studies in 2004, 1 U.S. dollar equaled 1.4 Canadian dollar), better education and multicultural society were some of the reasons […]
Currency traders should pay attention to this pair in the next few weeks. Though not a widely traded crossrate, USD/SEK can offer great opportunity if dollar strength continues. I like to look at volatility on daily charts and when I see low volatility combined with beautiful chart patterns I start following them for possible breakouts. USD/SEK has […]
I wanted to share this analysis for some time. Perfect chart pattern (long-term symmetrical triangle) on GBP/USD has almost used the maximum space available in the contracting range. For the past 3 years the currency pair contracted in a range with its boundaries standing at 1.65 and 1.52 levels. The latest re-test of the lower boundary has generated positive divergences both […]
Spain sold 10 billion euros ($13 billion) of bonds, twice the target for the sale, while Italy placed 12 billion euros of bills, easing concerns the countries would struggle to finance their debts and sending bonds higher. Italy, with the euro region’s second-biggest debt at almost 1.9 trillion euros, faces more than 50 billion euros […]
What would China’s easing mean for commodities? Higher prices? How would the Commodity Index perform if Crude oil breaks above $104 levels? I believe the positive technical outlook on the commodity index is mainly driven by these two factors that investors are currently anticipating. Of course we still haven’t seen a confirmed breakout from the […]
New year started with strong equity market performance especially for the U.S. indices. Gap openings in most of the indices were followed by consolidations. Gaps were filled in the past one week and the indices tested their support levels. It is clear from the charts that last one week’s contracting ranges accumulated some energy that will be […]
It is always easier to call for a market action after it takes place. This is called hindsight bias. Technical analysts look at several charts per day/week, go through different markets, time frames and analyze vast amount of data. While looking back at a chart pattern it can appear so predictable that we often ask ourselves how we missed that move. […]
Strength in U.S. dollar continued this week with the dollar index moving away from 80 levels, an important technical support level. Bullish outlook remains intact with the index possibly breaking out of a 2 year-long inverted H&S pattern (neckline: 80 levels). In the past, bullish/bearish crossovers of the long-term moving averages worked well and to support […]
In technical analysis, divergence is considered either positive or negative, both of which are signals of major shifts in the direction of the price. Negative divergence occurs when the price of the security makes a new high, but the indicator fails to do the same and instead closes lower than the previous high. US 10 Year T-Notes […]
