When all the commodities experience sharp sell-off, this is reflected on the major commodity indices. One of the widely used commodity index is the Goldman Sachs Commodity Index. The weight of energy products in the index is higher when compared with the Reuters/Jefferies CRB Index. As a result changes in Crude Oil price has a larger impact on […]
Strength in U.S. dollar and weakness in global equities and commodities has been the theme for the past few months. U.S. dollar strength can be seen not only against Euro but against several emerging and developed market currencies. Technical chart patterns are extremely bullish for the dollar. One of those bullish patterns is the inverted head and shoulder […]
MACD divergences are great tools to anticipate trend reversals. They are the first warning signal to show the weakness in momentum. When combined with technical support/resistance levels their message could be extremely valuable. Dow Jones Industrial Average has been ranging between 12,800 and 10,600 levels for the past 8 months. MACD warned us before every major market reversal. In July, in October and now… Dow […]
The longer price stays below the 200-day moving average the harder it gets for the long-term trend to reverse and the price to move back above the resistance areas. This could be the case for most of the equity markets as major equity indices are now forming consolidation ranges below their long-term moving averages. Bearish outlook […]
A long-term consolidation… A classical technical chart pattern (symmetrical triangle) and a strong technical support level… This chart would be a perfect fit for a text-book example. We will be looking for this commodity to find support at 270 levels. Wide trading range has contracted to as low as 100 points and now we are at the […]
Emerging market equities are showing weakness. Most of them are off of their 2011 high levels, below their long-term moving averages and in a downtrend. One example is Korea’s KOSPI Index. Weak and choppy rebound towards the 200-day moving average has formed a rising wedge (usually considered bearish). Meanwhile RSI hasn’t moved above the 50 levels (another bearish sign). When […]
While European countries are trying to come up with a good plan to save the euro zone, 6 central banks around the world the Federal Reserve, European Central Bank (ECB), and the central banks of Canada, U.K., Switzerland, and Japan decided to provide “temporary U.S. dollar liquidity swap arrangements.” Those dollar swap lines and programs are authorized through 1 […]
US Dollar is gaining strength against developed and emerging market currencies. Some believe that US economy is not strong and its currency can’t appreciate in value while others argue that what happened in 2008 can repeat and a massive de-leveraging can increase demand for the dollar. I’m in the second camp. As I go through my charts I’ve been seeing more and more […]
Spread between WTI Crude Oil and Brent Crude is likely to tighten in the following months. Sharp reversal was seen at 2009 low levels (0.76). Ratio could revert back to parity from extreme readings.
India’s Sensex Index might be forming a major top reversal (Head & Shoulder Top) in the past two years. The length of the distribution period makes this pattern significant. 3 important technical levels showing strong resistance at 18,000 levels. These are; 200 day moving average, horizontal resistance (green line) and the downtrend channel. H&S pattern will […]
