The U.S. players tried to start an upside trend last hour in New York. FTSE, DAX and CAC followed. The 8 days falling MA stopped effectively the move. Today this MA has fallen more and today's trading is below the MA. The MA will fall further the rest of this week plus Monday unless the U.S. traders mange to cross the MA on upside. It is very seldom a move manages to go through a falling 8 days MA.
However this August drop has been very special so there is a small chance they will succeed if they try hard in low turnover. The big players want to start a short covering rally because there are no fundamental reasons to buy now. Even if they manage to take the markets through the 8 MA they will run into the falling 21 day MA which will send the trading back to the 8 MA in one or a few days time.
The big picture is clear and unshakable. The markets are in a bear market and there is no signs of any fundamental or technical facts that could change this.
It is more likely that we might see a fall today or the next three days. I prefer just to watch the stock markets right now without positions
Gold made a new drop yesterday creating a so called key reversal which means that the top of the trend was seen yesterday if the coming days gold does not get above 61.8 % of yesterdays bar.
UK oil is around 108 dollar per barrel and the weekly chart tells me that from next week the technical picture will start to deteriorate and continue to do so for at least a month. I am still recommending short positions at current level to hold for a long period of time.
However this August drop has been very special so there is a small chance they will succeed if they try hard in low turnover. The big players want to start a short covering rally because there are no fundamental reasons to buy now. Even if they manage to take the markets through the 8 MA they will run into the falling 21 day MA which will send the trading back to the 8 MA in one or a few days time.
The big picture is clear and unshakable. The markets are in a bear market and there is no signs of any fundamental or technical facts that could change this.
It is more likely that we might see a fall today or the next three days. I prefer just to watch the stock markets right now without positions
Gold made a new drop yesterday creating a so called key reversal which means that the top of the trend was seen yesterday if the coming days gold does not get above 61.8 % of yesterdays bar.
UK oil is around 108 dollar per barrel and the weekly chart tells me that from next week the technical picture will start to deteriorate and continue to do so for at least a month. I am still recommending short positions at current level to hold for a long period of time.
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