Technical Weekly 16012005

EQUITIES

The Euro Stoxx 50 is approaching the 3700 resistance zone and is now overbought.
The Macd indicator has just given a sell signal, as a result a consolidation is expected on a short term basis.
We will monitoring closely the 20 day moving average (in green) closely because a rebound on it will mean that the index could challenge the next target zone around 3800 soon but a breakdown of it could mean that the correction should extend further.




















COMMODITIES


Brent

No change from last week, the bullish trend is still in place.
The price could challenge the 70$ soon.

















Gold
After a brief pause and a pullback to the upper trend-line of the rising channel, the bullish trend accelerates sharply. A pullback due to overbought situation is possible but the long term remains bullish.




















GERMAN 10 YEAR YIELD

Yields are stabilising around support, which includes the 100 and 200-day moving average.
The Macd is close to give a bullish signal and a falling wedge bullish pattern is clearly visible, which is why we believe that yields may not go much lower than that.
Renewed strength may be imminent.




















EURO-DOLLAR

The weekly chart of the Euro-dollar shows that the 2005 fall stopped at the spring 2005. At the same time, the weekly MACD lines have made a double bottom pattern and turned positive. The rate has also broken a downtrend line going back almost a year.
The first objective is located around 1.25.