Volatility in currencies keeps rising with GBP/USD breaking down a long-term support earlier during the month, JPY/USD rallying towards 95 levels over the past 2 months and now NZD/USD breaking down a strong 8 month-long trend line support. After the failed break above the horizontal resistance at 0.847 levels NZD/USD reversed sharply. First the cross […]
EUR/USD reaches strong support area formed by the 50 & 200 day moving averages. 1.3050 is the level where 200 day moving average and the lower boundary of the upward trend channel meet. Since we have seen 50 & 200 day moving average crossover in December 2012, this is the first sharp pullback to the […]
Both Italy and Spain are holding above their 200 day moving averages. After bottoming in mid-2012, both indices have formed higher highs and higher lows. Lower boundary of short/medium-term trend channels and the 200 day averages are overlapping at recent low levels and strengthening support levels for both indices. As long as Italy’s MIBTEL holds above 15,600 and […]
GOLD is likely to find support between $1,525 and $1,550. Year-long consolidation range has been intact between $1,525 and $1,800 levels. Latest sell-off in gold prices is not different that the earlier weaknesses precious metal experienced when the price reached the lower boundary of the medium-term consolidation range. Long-term trend analysis and the moving averages suggest $1,525 should act as […]
1.75 levels has been long-term support for the USD/TL. In the last quarter of 2011, cross rate breached above 1.75 levels and since then price has been consolidating above this critical technical support level. Over the past week, cross rate rebounded from the horizontal support to test the year-long trend resistance at 1.80 levels. Breakout above 1.80 can […]
Here we have another soft commodity that is closer to its long-term support area. Similar to sugar, cocoa also peaked in the beginning of 2011 and since then prices have pulled back to test the lower boundary of the long-term trend channel at 2,050 levels. Finding support between 2,050 and 2,100 could help cocoa establish a new long-term uptrend. […]
Sugar price is offering a great opportunity for the long-term positions. Price is now testing the 9 year-long trend support between 17 and 18 levels. Over the past 2 years sugar price pulled back from 35 levels to the lower boundary of its long-term uptrend. RSI formed positive divergence on the weekly scale. Breakout above 20 levels will […]
Long-term symmetrical triangles are powerful chart patterns to trade. They have defined boundaries and breakouts from these type of consolidation patterns are usually followed by strong trend periods. Consolidation ranges are considered to be low volatility periods where price fluctuates around the moving averages. Low volatility periods are followed by high volatility periods and vice […]
Long base formation on Cotton price might be close to completion with soft agricultural commodity breaching the 5 month-long horizontal resistance at 77.60 levels. The chart analyzes ICE Cotton May 13 futures price. Chart pattern can be defined as an ascending triangle or cup with handle formation with a round base that is spread over a 6 month […]
In April 2012 I analyzed the downtrend on the Chinese GDP and the SSE 50 Index (April 13, 2012 – SSE50 Index & China GDP). Chinese equities were trending lower since the mid-2009 and the GDP growth since the beginning of 2010. Equity markets acted as a perfect leading indicator. I’ve concluded that until we see a change […]
