/YM
Dow futures were trading higher this morning awaiting Alcoa to kick off the earnings season for second quarter, and ignoring the last night selloff in China of -2.4%, based on worries of Fed tappering and the news that Bejing will no longer extend credit to overcapacity sectors. Regarding US economic reports, today will be quiet day with only consumer credit data due to be released. Escalation in Egypt crisis might extend the last week rally in brent crude oil prices amid supply disruptions and growing demand in US.
The monthly and weekle chart clearly show that the uptrend has not been broken, still holding strong on 10ema and 20 ema respectively. If you compare the stochastics on monthly chart they have already turned down, but weekly stochastics are showing us that there might be another move to the highs before it goes south.
On a daily chart the picture is slightly different short term wise. Having broken down below 50 day moving average three weeks ago, today its trading just above it. If it succeed to stay above 50dma by the end of the week we will expect 20ema and 10 ema to cross 50dma, which will signal accelerated move towards the previous high levels in area of 15400.
If you have a look at 1hr chart you may notice that R1 (pivot points) is acting as resistance at the moment and stochastics pointing down might signal that we have done it for the day. So before I take any trade i will wait for breakout of the trading range 15063-15163. Which means that i will go short once it breaks the lows of the day with target pivot level and possibly adding to it if it breaks the pivot...or....going long after it breaks and close on 1hour chart above R1 which is around 15170.
Dow futures were trading higher this morning awaiting Alcoa to kick off the earnings season for second quarter, and ignoring the last night selloff in China of -2.4%, based on worries of Fed tappering and the news that Bejing will no longer extend credit to overcapacity sectors. Regarding US economic reports, today will be quiet day with only consumer credit data due to be released. Escalation in Egypt crisis might extend the last week rally in brent crude oil prices amid supply disruptions and growing demand in US.
The monthly and weekle chart clearly show that the uptrend has not been broken, still holding strong on 10ema and 20 ema respectively. If you compare the stochastics on monthly chart they have already turned down, but weekly stochastics are showing us that there might be another move to the highs before it goes south.
On a daily chart the picture is slightly different short term wise. Having broken down below 50 day moving average three weeks ago, today its trading just above it. If it succeed to stay above 50dma by the end of the week we will expect 20ema and 10 ema to cross 50dma, which will signal accelerated move towards the previous high levels in area of 15400.
The Technical Analysis Widget is Powered by FX Empire - The Leading Economic Calendar
0 comments:
Post a Comment