Home Technical Analysis Center

Technical Analysis Center

Gold Daily Chart 07/21

G1

During my last analysis of Gold daily chart I specified 1310.00 to be the first area of support and its importance to be defended by long term buyers. Last night that exact level was reached and a substantial bounce was provided.  At this stage the main area of resistance is 1337.00. We need to break that level in order to reverse this short term down move into a new up trend. If the buyers can achieve that, my next upside target is 1360.00. Since 1310.00 did hold very strongly, it is now THE MAIN area of support and Must be defended by the buyers at all cost. Any break below 1310.00 could create a significant drop towards 1290.00 and ultimately 1260.00

Gold Daily Chart 07/12

In the very short term, Gold has reached it upside objective of 1380.00 and is undergoing a phase of profit taking. If you calculate the last leg up from 1200 to 1320 (120 points) and project that length from 1260.00 low, you get exactly 1380.00. The overall trend is still up as indicated by the main trend line. First area of support comes in at 1310-1300 area. It is very critical the buyers defend that price zone, because if broken we could see a sharp drop towards 1260.00 and retrace entirely that huge green candle up.

E-mini S&P futures closed at the very low of the day confirming the weakness seen from the previous day session. However we are entering into very short term oversold territory and a dynamic bounce could be initiated at any time. The first level of resistance market has to overcome is 1997.00. Till that level is no breached to the upside we may either rotate within 1980 to 1997, or continue this directional down move towards 1950.00.

Daily Chart Analysis ES (S&P E-mini futures)

After Brexit sharp drop, market has turned severely to the upside. The reversal is a combination of massive central banks intervention and surprised short covering rally. In addition Brexit uncertainty has eliminated any possibility of near future rate hikes by the FED, therefore forcing more capital to enter the market in search of higher returns. The first level of resistance market has to overcome is 2110.00. If we manage to break that level, it’s perfectly possible price will go challenge the upper band of the existing bullish channel at 2200.00. On the other hand if we fail reaching or breaking 2110.00, a retracement against this current up move is in play down to 2050.00. Looking at the last 3 daily candles, we can notice the range of each candle is shrinking as we are approaching major area of resistance. A shrinkage of range at major resistance levels is often sign of market exhaustion and possible reversal. For anything bearish to happen we need to break below 2075.00. Till then we will be looking for this move to continue up and we will be monitoring price action past 2100.00

S&P 500 Futures Daily chart 07/11

G5

S&P Futures daily chart still looking very strong. We have just initiated a break out of a 3 days consolidation and in process to start the second leg up also called wave 3. Based on current measurements, upside objective is near 2200.00. For anything bearish to start we need to break below 2100.00 decisively. Till  then any pull backs will be considered as normal retracements against an established uptrend. Our 2 main supports are 2120.00 and 2110.00. Despite the overly bullish condition of this market, we are entering extremely over extended territories and a very dynamic pull back could surprise all buyers.

Risk Disclosure : Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure : Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Testimonials Disclosure : Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.

Live Trade Disclosure : This presentation is for educational purposes only and the opinions expressed are those of the presenter only. All trades presented should be considered hypothetical and should not be expected to be replicated in a live trading account.