Technical Analysis - After the Decline?
Thanks Giving Special: We're celebrating these sexy declines, perhaps you didn't have much joy with them but tradingmarketsignals.com uncovered them and with that we're giving readers the chance to join us exclusively in which we've taken $20 of our 6 month subscription ends 25th November 2010.
Gold
We have broken the green upper channel and it seems likely that price will move lower. Moving above the green line can put the rally back into play but it is not likely and a break of the red channel range lines will likely produce further downside (previously).
Chart 1 Gold Four Hour Chart
A near $100 move south! Absolutely amazing and we have pretty much unwrapped it the whole way. The chart has changed now - The previous action has been forgotten and the $100 down move is done but that doesn't mean we can't fall another $100 AND it also doesn't mean price can't rally $50.
What it does mean is that at the moment we would like to sit on our hands and literally do the best trade of all: Absolutely nothing! WHY? Well we have two parallel line patterns in play the green lines and the blue lines! We also have the intersection of the yellow line significantly meeting at the same area.
What does this mean?
Short below the green line and long above the yellow.
Although longs should just possibly be sat out as the strong downside still signifies more risk for price collapses.
Dow Jones
Snapping of the blue lines will produce further downside.
The green minor trend line snap will also be another sell in itself. Ultimately if you're sitting on the sidelines then let the wider red range lines decide and inform you of the next big move for the Dow Jones (previously).
Chart 2 Dow Jones 4 Hour Chart
That's precisely what happened and we enjoyed another wave of solid selling on Tuesday! We're now looking at a four hour chart to put things into more perspective with the bigger circle showing the hourly action. We are consolidating tightly in a range and snapping of the red lines on the bigger chart will produce the next move taking us to the upper yellow cross or lower yellow cross. The indicator along the bottom is a little oversold - not largely, so a little bounce could provide relief to the bulls but if we look at the hourly's the narrower red lines are the trigger points however should they trigger some may want to take small profits as the range may just widen especially if the move is to the upside. IF the range is busted with conviction to the downside, we feel you may be about to enjoy another big sell-off so stay strapped and enjoy!
Crude Oil
The dark blue line shows the nice decline. Taking out the dark blue line to the upside may provide some respite but taking out the large upper blue previous range line will be detrimental in which price will likely collapse further (previously).
Chart 3 Crude Oil Four Hour Chart
Price went onto collapse further as expected as you can see marked by the blue circles! We are in the middle of the previous range in which we regain to the upside or collapse to the downside! We'll let the yellow tight range lines decide so watch these carefully for triggers.
Sterling
Chart 4 GBP.USD Four Hour Chart
Once again another neat decline for the pound just as we had anticipated! Once again we have a lot f overhead resistance for this one marked by the blue lines. The price is moving tightly and the yellow lines will be deciding where to go. Breaking the channel to the downside may well confirm the top for this currency in which price will slide further!
Euro
What are we watching/waiting for?
'A snap of the red channel will simply be like the kiss of death' (previously).
Chart 5 Euro Four Hour Chart
The snap has been delivered and with it price slid further down yesterday - nice for us!
The kiss of death is being tested at the yellow circle - failing here would be the ultimate kiss of death whilst taking it out to the upside will likely expand the range to the blue line from where we'll decide the next move. For now, watch the circle and see where we go.
Join us with our Thanks Giving Special: We're celebrating these sexy declines, perhaps you didn't have much joy with them but tradingmarketsignals.com uncovered them and with that we're giving readers the chance to join us exclusively in which we've taken $20 of our 6 month subscription ends 25th November 2010. TradingMarketSignals.com 6 Month - Exclusive
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