Previous week is revised upwards by 6,000 and this week’s data on initial jobless claims skyrocketed. We have been following this chart for some time and the loss of momentum on the downside was signaling a possible reversal on the initial jobless claims. I’ve mentioned the importance of the 52-week average as a strong resistance. With […]
It’s been an exciting period watching global economies constantly trying to devalue their currencies with the aim of increasing demand for their goods and services. Financial media is covering this under “currency wars”. Weak currencies are good for economies because countries will be able to export more… Though let’s not forget that there is a fine balance […]
Rising wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. Rising wedges slope upwards and have a bearish bias. The loss of upside momentum on each successive high gives the pattern its bearish bias. Dow Jones Industrial Average has been forming a rising […]
Tech Charts blog followers will remember the earlier analysis on Soybeans forecasting a strong directional move. Low volatility is usually followed by high volatility. Volatility does not have direction but it is cyclical. With this week’s sell-off Soybeans broke down two important technical support; the 200 day moving average and the year-long trend support. Short-term […]
Lumber price hits strong resistance at 327 levels and is likely to pull back. Horizontal support/resistance levels provide valuable information on the supply and demand relationship. Lumber is an important commodity for the housing market. Over the past three years prices have been consolidating in a wide range between 150 and 330 levels. Higher lows on the price chart shows increasing […]
Will EUR/USD manage to hold above its 200-day moving average? I have updated EUR/USD chart earlier during October. http://techcharts.wordpress.com/2012/10/12/eurusd-5/ Since then, cross rate continued to consolidate above its long-term average. While the direction of the next trend period is not clear yet, failure to rebound from this strong support area is a warning signal for euro weakness. Over […]
Soybeans are close to a strong directional move. Since the dry summer conditions ended prices have reversed sharply and pulled back to their 200 day moving average. Soybeans found resistance between 1,664-1,800 area in August and formed a double top chart pattern which was broken down at 1,600 level in September. Prices are now consolidating above […]
U.S. government bonds are likely to rebound at the back of a risk-off environment. Weak commodities and equities helped cash and cash equivalents to gain strength over the past week. U.S. 5 year note provides good risk/reward in the short-term as it found support at a strong technical level and also rebounded with an outside […]
Commodities are selling off. From energy to metals we have seen widespread weakness in commodities at the back of global growth concerns. Since March 2011, S&P GSCI has been in a downtrend forming wide swings. Feb 2012 peak was lower than the April 2011 and Sept 2012 peak was lower than Feb 2012. This resulted in a […]
After a dry summer and a global scale drought, agricultural commodity prices moved higher resulting in returns in excess of 30%. From those, wheat and corn were sharply higher when compared with other soft commodities like coffee, cocoa, cotton & sugar. Sharp spike in wheat prices pushed the agricultural commodity from 600 to 950 levels in less than two months. Wheat price reached 947 levels […]
