Technical Weekly 17112006

Equities
After the break of the 3880-3890 resistance level in October, the DJ Euro Stoxx 50 is testing the next level around 4100.( a 138.2% retracement of the May-June sell off.)
What is worrying is the negative divergence we are building for the moment between the index and its technical indicators: MACD and RSI are already showing hesitation (lower highs). This pattern is in fact the same one we saw in May 2006.
Moreover the index seems to be forming a large rising wedge bearish pattern and the TD Combo indicator is now flashing sell signals on different time frames.(arrows)

For conclusion, I can say that the trend is still good and as long as the uptrend line (in red on the chart) is not broken, there is no need to panic but a correction could start soon.

Commodities
Brent
No change, after a steep decline, the Brent is approaching his long-term support channel (weekly chart, not showed here), I believe it could rebound from oversold condition.Recently the TD Combo indicator gave a buy signal and as you can see on the chart, each signal (pink 13-arrows) was followed by a strong move.

Gold

Was not able to break above the 630$ resistance zone, gold could be forming a triangle pattern with a support level around 570$.

Copper
This week I also take a look at copper (generic future) because it recently broken down from a descending triangle bearish pattern.

I think this event is one important one because copper is often seen as a relevant economic indicator.

German 10 Year Yield
No change, yields continue to be volatile and extremely difficult to trade.

The breakout above 3.8 was a bull trap and yields could now trade sideways in the coming days/weeks.

Euro-dollar
The 1.29 resistance zone was too strong for the rate, but the bullish ascending triangle is still in place.
A breakout above the 1.29 level would trigger another acceleration.

Support is located around 1.27-1.265(rising black line).