Technical Analysis Update
Thanksgiving Special membership rates ENDS 30th November: We're celebrating the recent markets declines, perhaps you didn't have much joy with them but tradingmarketsignals.com uncovered them and with that we're giving our readers the chance to join us exclusively in which we've taken $20 of our 6 month subscription.
The four most dangerous words in investing are "This time it's different". ~ John Templeton
Happy Thanksgiving to all our readers & members from all at tradingmarketsignals.com
The markets rewarded us with another great session in which the Euro and the Sterling provided us with some great moves. In this week alone we've uncovered well over 1000 points in action with our intra charts!
Dow Jones
Four Hour Chart
We have an outside chance in which the Dow may have made its low on Tuesday's session in line with our three yellow line projections. We have the lower larger yellow line offering support whilst the two other intersecting yellow lines are meeting at the same point. The market could selloff further though towards the lower end of the red indentified channel so in respect to this we will simply watch for the blue range lines to break away either way. The action is patchy and not worth taking the risk on moves ahead of the holiday day off tomorrow.
Euro
Tuesdays Four Hour Chart:
Wednesdays Four Hour Chart:
Tuesday's recap comments: Where now? Once again it will be important to take out today's lows of 13526 and last week's lows. You'll notice our red intersection which is mapping out the way price is moving at present. You'll also notice a tight yellow triangle - So far today price is moving with indecision and chances are a break of this yellow triangle will produce a sizeable move.
An absolutely fantastic move provided by the markets in which we marked out the map again. The yellow triangle was given and with it we didn't need to break last week's lows to jump on board. A snap of the yellow triangle was all that was required and the Euro gave another 200 points to our members. Absolutely amazing as all week we've been massing the points.
Once again we would not like to part of rallies as the Euro could easily fly towards 127 - 130. You can notice the wider red triangular channel that the decline has materialised from. For downside to 'halt' the Euro would need to regain 134 for the moment which would take the currency back above this triangular play. Notice the indicator along the bottom which is also getting over extended to the downside. A short term low could form but again risk is very high at present and we would rather sit rallies out until more confirmation builds. To think the Euro has declined from 14289 to 13289 we cannot suddenly find a reason to buy at current levels as we are at the lows after declining 1000 points. We have also closed many TMS Euro Signals which have given over 2000 points in gains. The rise was frustrating, the accumulation of sells was fun and the decline has been mouth watering and joyful. Not many can feel the same way as traders have got their fingers burnt.
Sterling
Tuesdays Hourly Chart:
Wednesdays Hourly Chart:
A 200 point move caught on Monday and we mapped out our yellow range lines in which we simply waited for a snap yesterday. We got the snap to the downside and obtained another 100+ points. We mapped out this declining red channel from the highs and had been calling for price to move to the downside of this channel when on Monday we were at the upper edge of the channel. Where are we now? We are at the downward edge of the channel, just as we anticipated. What now? Well once again a snap of the blue range lines should produce a good enough move. A downside move would cause the red channel to snap and this will take price further down to 152-154. We had mapped out the channel right from the high but many across the globe will still fail to recognise it. Pattern recognition is one of the most important assets of technical analysis and trading.
Crude Oil
Four Hour Chart
Not much has changed from Tuesday's chart for Crude and we must continue to monitor the range bound activity near the bottom of the recent decline. A clear break will produce the next large move.
Gold
Four Hour Chart
Gold did not react to the upward sloping red trend line and price moved higher on Tuesday. It was about the only market that did move higher on Tuesday's wide market sell-off.
We have two lines to watch for the next big move. Firstly we have the blue channel in which price has been moving within. We are at the upper edge of this channel from where price can fail and confirmation would be given if price moved back below the red upward trend line. If we take this blue area out to the upside then we would expect $1400 to come alive once again. Failing here followed by a move below the upward red trend line and this would have enough power to move back to last weeks lows.
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 30th November 2010. TradingMarketSignals.com 6 Month - Exclusive
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