European indices are at critical levels. Breakout higher could result in a multi-year uptrend. Failure to clear those strong long-term resistance levels could signal the end of last 5 year’s uptrend. Whatever the outcome, the implications will be long-term. STOXX EUROPE 50 index cleared the 15 year-long trend resistance in late 2014. EURO STOXX 50 […]
Unless gold prices recover above 1,130 levels in the following weeks, probability of a sell-off towards 1,000 levels will increase. In mid-July gold price broke below the support range between 1,130-1,150. Since then the rebound has been weak and price failed to recover even above 1,110 levels. Lower boundaries are considered to be negative extremes […]
Weakness in emerging market equities can be seen across the board. From commodity exporting South American countries indices to China’s trading partners in emerging Asia, all show downtrends. Head and shoulder top is a bearish chart pattern and usually forms after prolonged uptrends. It acts as a reversal chart pattern and successful completion could result […]
Commodity exporting countries currencies are weak against the U.S. dollar. Especially energy and metal exporters are showing significant weakness. One of those is the Canadian dollar. USD/CAD cross rate is now testing a strong resistance at 1.3040 levels. Breakout above 1.3040 levels can result in a runaway price movement to historical high levels. Though RSI, a […]
I wrote several updates on Copper. This one is another update on Copper’s strong downtrend. While it has been a volatile price movement, especially the sharp pull back towards 3 levels, copper respected all the strong technical levels. Following its pull back, industrial metal resumed its downtrend. Now price is breaking below January lows (2.40) […]
Vietnam equities are showing strength. Massive multi-year base formation may be close to completion. Vietnam’s VN Index is testing 640 levels for the third time since 2009. Breakout above 640 will be very positive and can push the index towards 1,000-1,100 area. Another form of base formation can be seen on the VIETNAM Market Vector […]
Emerging market currencies continue to lose ground against the strong U.S. dollar. Already weak South American currencies can enter the second stage of weakness after completing major multi-year base formations. After completing a rounding bottom between 2009 and 2014, USD/COLOMBIAN PESO, broke above 2,000 levels and rallied towards 2,600-2,700 area. Critical long-term resistance could be […]
I think it is time to revisit our agricultural commodity charts. Especially the latest bullish development on Wheat prices. Agricultural commodities have been weak. They are more than 50% lower from their 2008 levels. Though, a change in trend is in progress. Wheat prices tested long-term trend line support and prices have rebounded. On the daily chart price […]
U.S. dollar remains strong against major cross rates. U.S. dollar strength is a long-term theme and it’s here to stay in the coming months. The most vulnerable group is the emerging market currencies. We have seen significant weakness in emerging market currencies over the past year. Long-term charts suggest further weakness for the emerging market […]
Agricultural commodities are testing their decade-long trend line supports and are likely to rebound in the coming months. Prices are expected to rebound from such strong trend supports and in most cases put in a medium/long-term bottom. Especially when more than one trend line overlaps around the same area, it increases the significance of that support. […]
