Technical Weekly 20012006

EQUITIES

Last week I said that equity markets were overbought and that a correction could be coming soon. So, there we are but I still not believe that this is the start of a major correction.
The consolidation may last a bit longer (the Macd indicator on the chart below is still bearish) before indexes resume the mid-term uptrend.
I also maintain the positive long -term view on the Japanese market.
The recent steep correction was not really a surprise and I will monitor closely the 15000 support level on the Nikkey 225.If this level holds I expect the bull market to resume soon.



















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 extreme overbought situation is likely (see arrows on the chart when a pink 13 number appears a correction is likely) but the long term remains bullish.





















GERMAN 10 YEAR YIELD
The upside acceleration that I suggested last week has occurred and I believe that yields have resume their uptrend.


















EURO-DOLLAR
No change from last week as the Euro-dollar has been stabilising.I still think that the rate will break above 1.22 but on a short- term basis it could consolidate between 1.196 and 1.21.