Technical Weekly 10042006

EQUITIES
The stock market did well in the first quarter.
As welcome as the gains were, the Euro Stoxx 50 continues to trade sideways.
The SP 500 however remains strong and should reached the next target between 1330-1350.(see chart below)

















COMMODITIES

Brent
Brent is challenging resistance of a major triangle formation around 68$.
A breakout above this level would be very bullish with a high probability to reach the 84-85$ level in the coming weeks.
















Gold
Gold and metals continued to move their way higher.
Last week, gold futures contract breached the $600 level for the first time in 25 years.
The chart below shows gold breaking out a symmetrical triangle above the 560$ level.
Next target would be minimum 610$.


















GERMAN 10 YEAR YIELD
Broke through a major long term resistance last week.
The next resistance is the psychological one at 4% but the mid-term target in the coming months is now around 4.5%.



















EURO-DOLLAR
The breakout above the 1.22 level has been followed by a significant pullback.Nevertheless we still believe that the rate could reach 1.24 in the coming weeks.