Monday, 6 February 2012

Double top on the ASX 200?

Gotta stay on your toes in this game. Though largely that depends on your time frame. I trade both long and short term signals so I'm always on my toes! Many of the markets I follow are today signalling or close to signalling further near term weakness.

The hourly chart of 2012 so far for the ASX 200, including after hours trade, shows a clear double top. The double top pattern would be confirmed by a move below 4217. Of course you can quite clearly see the same pattern on the daily chart.

AUD/USD turning down at resistance?

My Grandmother used to say "there's no rest for the wicked". I must be wicked, as there seems to be no rest for me today.

Has the AUD/USD turned down at resistance? Maybe. Finger in the air, and looking at tests of similar resistance in September and October, I'd say a move below 1.06 would lead to still lower levels.

EUR/USD at what point would you throw away the 1.42 target?

My weekend EUR/USD post was titled EUR/USD targeting a rise to 1.42. At what point would a trader throw that target away? Well bearing in mind that the weekly chart trend is still down, you wouldn't want to give the market too much leeway. Each trader needs their own plan, but three potential chart based exit points would be a move under the 40 day moving average at 1.2950ish, or below potential round number support at 1.30, or even below last week's low at 1.3026. I personally use money management exit strategies rather than chart based strategies, whether I have a winner or a loser, but that is a whole other topic.

Silver tests up trend line, Gold weakens but still trending up

Hourly charts, but worth knowing about. I remember Silver being smashed from April 25 last year lead to weakness across the Undollar complex. That said, the Silver trend line has held so far.