Technical Weekly 11042007
Equities
The DJ Euro Stoxx 50 has already reached the target of the double bottom pattern around 4300.
The 4300-4320 resistance level is an important level to watch because after dropping in the first two weeks of March, markets are making a rebound towards the February-highs.
Every technical analyst knows that the time to worry is not on the initial decline but on the failure to post a new high.
The concern we see here though is evident; the 9 days RSI indicator is now trading above 70, which means we are now back into 'overbought' status.
Being overbought has not always been problem the last several months, though it was a horrifying problem in late February.
With both of those possibilities in view (breakout above new highs or correction of the overbought status), we are not going to take big “bets".
However, it does not change the fact that the momentum is currently with the bulls but to become more bullish, we need to break above resistance level.
On the last weekly I said that a break above the two resistance lines (green and gold lines) would be very bearish for bonds.
You will find an update of this weekly chart of the German Government Bonds 10 year yield below.
For a more detail picture, we also include the daily chart which shows what it appears to be a new bullish (bearish) leg for yields(bonds).
Short term target remains 77-78$ in the coming weeks but the Brent must first correct the overbought status which is showing on the chart by the TD Combo indicator.
As you can see the two last signals were pretty accurate.
We advice to buy the dips when the price touch the up-trendline (in green on the chart).
No change, my targets in the coming weeks remain 1.36 and then around 1.38.
In order to keep the outlook bullish the rate should hold above the ascending up-trendline (red arrow on chart).
1 commentaire:
When they clonidine reached the town the boat was in the canal, ready for them.. ' Let's viagra go around on the porch and sit down, said Ralph.. But on the first xanax appearance of my double--whom I sent on this fatal Monday to the fifth meeting--he was the sixty-seventh man who entered the room.. William, you seem to have everything! This is really a very pretty sheet of water, and the reflections of the trees over there make a charming prozac picture; you can't get that at the seaside, you know.. At last he caught the eye of xanax Monsieur Poopoo...
Enregistrer un commentaire