Breakouts from contracting ranges are usually very powerful. The longer the consolidation period the more powerful the breakout is. In the case of USD/INR we are getting closer to a strong breakout from the year-long consolidation range. Breakout above 55 levels will be bullish for the U.S. Dollar and will target 57-58 area on the […]
One of the most exciting chart pattern in grains market is in Oats July 2013 futures contract. This massive symmetrical triangle is likely to break upwards with strong momentum. I posted similar chart patterns earlier on Soy Meal, GBP and Copper. All of them formed perfect symmetrical triangles and were followed by strong breakouts. Oats […]
After a 20 month-long sideways consolidation Gold is likely to find support at the strong support area between $1,525-$1,535. Since October 2012, prices have been moving lower as part of the sideways consolidation. Gold tested the support area for 4 times over the past 20 months. On the long-term chart, decade-long uptrend had two major […]
Japan’s Nikkei 225 index is losing momentum after the strong rally. In mid-December 2012 I drew attention to the strong breakout in Japanese equities (December 19, 2012 – Japan Nikkei 225) supported by a weakening Yen. Breakout from a 3 year-long downtrend at 10,000 levels was followed by a sharp upward move. As we got closer to […]
Equities are testing new high levels. Currencies are volatile, especially after the latest sharp movements on JPY, GBP and EUR. Gold is testing a major support level. Commodities are lagging… and Dr. Copper is telling us the other side of the story. A year-long symmetrical triangle is close to completion. Breakdown from this symmetrical triangle can […]
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 […]
