Thursday, 26 May 2011

Gold turns down?

Jebediah were very good at ANU tonight. Very good, but not great. They're no You Am I.  Has gold's breakout from the down trend line from the early May high been proven false? Looks possible... time for some zzzzzs.

S&P 500 daily and hourly tell different stories

The daily candlestick chart shows a break downwards through the trend line, raising the odds of a down trend developing.....

... while the hourly candlestick chart shows a bounce from the bottom of the trend channel. The trend at larger degree (daily, turning down) has more influence on what the market will do next then the trend at lesser degree (hourly, turning up). That said, in this case, as with the ASX 200, we need a break below yesterdays low to confirm the break downwards at daily chart level.

ASX 200 hourly

Trend channel breakout still not confirmed. To my eye, a move below yesterday's lows would confirm the breakout, and a move above resistance around 4650 (from trend line, previous highs, and previous lows) would signal that yesterday's move was a false breakout.