EUR/USD Daily Chart (as of 6/14/2013):
We mentioned a potential bearish harami candlestick pattern that formed on June 6 and June 7 at the key resistance level of 1.3300. It was an important warning sign as the Eastern candlestick pattern formed right at the Western resistance area. But that pattern ended up with no confirmation from subsequent trading sessions. On June 10, a bullish candlestick engulfed the prior session’s (June 7) small bearish candlestick body. The candlesticks of June 10, June 11, and June 12 together formed an advance block pattern, in which the three candlesticks had progressively smaller real bodies, indicating a weakening upside drive. (Note: the candlestick of June 12 was less bearish as it had a relative long lower shadow showing support at the session low of 1.3265.) CLICK FOR MORE →
The pair is trading between two trend lines — the long-term downtrend line and the short-term uptrend line. On 6/6/2013, the day before Non-Farm Payrolls, we had a strong bullish candlestick with a relatively long upper shadow, indicating potential resistance at the session high of 1.3300. Following that on 6/7 (Friday), we had a small bearish candlestick body completely within the prior session’s large candlestick body. It was a potential bearish Harami pattern in an uptrend, but that warning signal was not confirmed in the subsequent trading sessions. CLICK FOR MORE →
The charts of the weekly 30-Year U.S. Treasury Bond prices (left) and the daily E-mini S&P 500 Futures (right) suggest that the intermarket principle of bond prices generally leading stock prices might apply in this circumstance.
If this relationship is in effect, the data suggests that the directional bias of the S&P 500 could be sideways to down over the next several weeks. CLICK FOR MORE →
Fibonacci retracement levels are used in technical analysis in order to determine key support and resistance levels. The Fibonacci retracement levels are derived from the Fibonacci sequence which was created by Leonardo Fibonacci who introduced the sequence to Western mathematicians in his book Liber Abaci in 1202.
This sequence has been around for over 800 years which explains its great popularity among technical analysts as it has stood the test of time. The Fibonacci sequence has been used in a wide range of application such as computer algorithms, design, technical analysis and they also appear in biology. The Fibonacci sequence has first appeared in Indian mathematics in a piece of literature named the Sanskrit Prosody. CLICK FOR MORE →
EUR/USD Daily Chart (as of 6/7/2013):
The pair surged yesterday to the 1.3300 area, breaking above a key resistance level of 1.3240, which is the high of 5/1/2013. Yesterday’s candlestick had a strong bullish body with a relatively long upper shadow, showing potential resistance at the session high. After today’s NFP data, the pair has pulled back and is now trading below 1.3240. The RSI on the daily chart is breaking above an important resistance line connecting the 2/1/2013 high and the 5/1/2013 high. The MACD is turning up and is above zero. CLICK FOR MORE →
Returning to the daily chart used in the price forecast for the S&P 500 Update on May 16th, price respected the major resistance band that began at 1682. There are many complementary sell signals in the daily and 3-day charts when price reached that level, the most obvious being indicator divergence in the Composite Index (top indicator) that was not picked up by the 14-period RSI (middle indicator) in either time horizon. However when an “M” pattern forms in a momentum indicator at a price target like the RSI did on the daily chart at the 73 level, it can also be considered a sell signal. If you looked for sell signals when price tested the 1555 and 1632 levels, you could find even stronger sell signals such as key reversals, prior horizontal indicator pivots, and M patterns/indicator failures just under the crossover of the two moving averages on each of the indicators. All this evidence reaffirms that if a market respected a price grid in the past, chances are it will respect it in the future. CLICK FOR MORE →
The daily chart of gold is showing a rising wedge-like consolidation pattern within a general downtrend. This chart formation hints at a possible impending break to the downside to continue the medium-term bearish trend that has effectively been in place since the October 2012 highs near 1800. CLICK FOR MORE →
EUR/USD 1-Hour Chart (as of 6/5/2013):
Currently the pair is trading in a small range from 1.3040 to 1.3100/3110. On the 1-hour chart, the EMA 200 has been acting as a support line, which is consistently turning up recently, and the pair is making higher highs and higher lows. The current EMA 200 is positioned around 1.30, which is also a previous resistance level, and now is turning into an important support level.
Trading strategy based on 1-hour chart: CLICK FOR MORE →
On the first chart we have the weekly, 3-day, and daily time horizons of the Nikkei 225. In the daily chart on the far right is a black bar with an “s” that marks a strong bar which marks the start of the ranges that are subdivided with the Fibonacci retracement tool, while the black arrows with “e” are the ends of those ranges. The red horizontal lines across the screen mark where different ratios from the different ranges overlap to form major support confluence zones. CLICK FOR MORE →
EUR/USD Daily Chart (As of 6/3/2013): We mentioned a temporary uptrend line on our 5/31/2013 analysis. Today, we are going to take a closer look at the validation of that line.
On 11/13/2012, there was a morning star candlestick pattern, and right after that pattern price went up for more than two months until it hit the monthly downtrend resistance line on 2/1/2013, followed by a strong bearish candlestick on 2/4/2013 which confirmed the monthly resistance line. Price then went down for about two months until 3/27/2013. Things then got very interesting in the subsequent trading sessions. From 3/27/2013 to 4/4/2013, many key candlestick patterns formed. As we can see on the daily chart, we have a tower bottom, a bullish harami, a doji, a tweezer bottom, and a long-legged lower shadow candlestick, all converging together around the uptrend line. CLICK FOR MORE →