DAX 30
Just holding triangle support on the weekly chart as we re-test the top of the right-angled triangle – and overbought as we have been nearly all of this calendar year.
SHORT TERM TRADER: Tiny short at 12654; stop above 12900. First target 12300.
POSITION TAKER: Square.
FTSE 100
Not exactly overbought but displaying many of the characteristics that have dominated all year. A second weekly tiny hanging man candle denotes a little instability though the head & shoulders top has not panned out as planned Friday.
SHORT TERM TRADER: Small short at 7542; stop above 7600. Target 7300, maybe 7200.
POSITION TAKER: Square.
S&P 500
The insatiable appetite for ETFs continues to keep stock indices in overbought territory.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Hardly surprising that with cable worth 20 cents less than its pre-Referendum value UK exports have risen by more than those of Germany and France for five consecutive quarters, data from BDO show.
SHORT TERM TRADER: Small short at 1.2690; stop above 1.2830. Target 1.2400.
POSITION TAKER: Square.
EURO/US DOLLAR
Small signs of instability with last week’s dragonfly doji candle and the commodity channel index looking set to turn negative. The European Commission has ruled out Italian state help for two failing banks in the Venice region, and the ECB doesn’t want to get involved.
SHORT TERM TRADER: New small short at 1.1185; stop above 1.1300. Target 1.0900.
POSITION TAKER: Square.
GOLD
For a second consecutive week we’ve ended up with a small spike high above trend line resistance. The commodity channel index has been bearish for a little while and other precious metals are looking similar – though not palladium.
SHORT TERM TRADER: Small short at 1271; stop above 1270. Target 1220-1230.
POSITION TAKER: Small short at 1262; stop above 1280. Target 1200.
MORE FROM NICOLE ELLIOTT...
Nicole Elliott is a longstanding Member of the Society of Technical Analysts and provides the IC's trading coverage. She is regularly interviewed and quoted by the financial media, is a conference speaker and author of several books on charting.
