Failure to breach the descending trend line would add credence to Friday’s rejection at 50-DMA and inverted bearish hammer formation and open doors for a revisit to 1.05. A violation there could yield a sell-off to January low of 1.0341.
On the higher side, only a daily close above 1.0677 (Feb 17 high) would signal bearish invalidation.
The selling interest have repeatedly run out of steam below 50-DMA since January 31.
We did have a daily close below 50-DMA on Feb 17, but that didn’t work out. So why would it work this time…?
Check out the DMI indicator. We have a bearish crossover, which didn’t exist on Feb 17. Furthermore, talk of Scottish referendum is gathering pace.
Thus, a daily close...
Pair’s inside day candle pattern followed by a bearish break below Friday’s low of 1.2994 and a drop to 1.2960 suggests the pair is likely to head towards August low of 1.2865 levels over the next few days. This is purely a chart based view and a dovish Fed could of course trigger correction.
Retreat from the previous day’s high of 503.00 t o today’s low of 492.00 suggests the rebound from the low of 473 (Sep 12 low) has run out of steam and the prices could test head and shoulder neckline level of 474.
Moreover, we have had an inverse head and shoulder breakout failure…and that adds credence to the bearish view.
Burberry shares are up almost 3% and are the top performer in the FTSE100 index.
A day end close above 1377 (Aug 24 high) would mark a bullish break and open doors for 1468 (Mar 3 high).
However, check the volume… the three-day winning streak (including today’s gains) is accompanied by falling volumes. Hence, bulls should observe caution as there could be a...
Friday’s sell-off if followed by a failure to hold above 100-DMA of 2120 today would open doors for a further drop towards 2095 (rising trend line coming from Feb low and June low).
On the higher side, breach of resistance at 2147.6 (Aug 2 low) could yield a further retracement to 50-DMA around 2164.
However, the index appears a sell on rise trade unless...
Despite the three-day losing streak and drop to 1.3235 earlier today, the pair retains bullish bias, given the rising trend line on the daily RSI and price chart has remained intact.
A day end close today above 1.3279 (Aug 26 high) would add credence to the bullish view and open doors for a re look at 1.34 handle.
On the downside, breach of rising trend line...
Despite the rebound of monthly 50-MA support in July and a positive August candle, the subsequent failure to hold above monthly 5-MA this month coupled with a drop below monthly 10-MA amid bearish indicators suggests the stock is likely to re-test monthly 50-MA support seen today at 2615 levels.
Shares gaped lower today and extended losses on reports the...
Good news is here for FTSE100 bulls. There are no signs of typical bull market complacency in the recent rally in the mining heavy index, said Richard Hunter, Head of Research at Wilson King Investment Management.
Wilson joined us on today’s London open show and talked about the likelihood of the index heading towards/breaching 7000 levels. Check the entire...
Bearish factors –
Bearish crossover between 5-DMA and 10-DMA
Bearish break in daily RSI from rising channel
Increased odds of Fed rate hike
Bullish factors –
Cable weakness &
The index is still above key support level of 6780
Inverted head and shoulder breakout target yet to be achieved
Thus, the overall trend remains bullish unless the index closes...
Daily chart chows –
Falling trend line has been breached, however,
RSI is close to being overbought, while money flow index is going nowhere
Hence, failure to take out 175.45 (March 8 high) could yield a pull back to falling trend line level of 165 and 160 (23.6% of July 2015 high – June 2016 low).
On a larger scheme of things, the stock appears on track to...
Fresnillo is down 3.61% today and is a top FTSE100 loser.
The daily chart shows –
• Double top breakdown
• Money flow index approaching oversold region for the first time since November 2015
• RSI is approaching oversold region for the first time since July 2015
Overall, prices appear on track to test 1500 levels (100-DMA), although a minor pull back once...
Onesavings has jumped more than 10% to 271p as the group, which offers residential mortgages and buy-to-let loans reported a 36% increase in the first half profits to GBP 64.6 million.
On the daily chart –
Prices are attempting a break above critical resistance of 271.65 (May 11 low).
The odds of a failure to break higher/hold above 271.65 are high given the...
Daily chart pattern
Bullish symmetrical triangle breakout
Overbought money flow index for the first time after March 2015
Stuck at 50-DMA level of 1125.24
The daily chart suggests the bullish break from symmetrical triangle could be short lived. The only fact that remains in favor of bulls is the daily RSI, which is well short of overbought territory....
Daily chart pattern – Rising channel
Housebuilder Persimmon has reported a 29% jump in first-half profits and said customer interest since the Brexit vote has been "robust". At the time of writing, shares were up 3.68% at 1860 levels. Daily high stands at 1884 levels.
A bullish break above 200-DMA level of 1901 would open doors for pre-Brexit level of 2125. The...
Silver’s retreat from the August 8 high of $20.779/Oz to today’s low of $18.746/Oz has left the precious metal oversold on the intraday charts – as per hourly and 4-hr RSI.
Furthermore, the 50-DMA at $19.32 is still rising, which suggests the selling is overdone and prices could correct from here.
A corrective rally to $19.367/Oz (23.6% of Dec low to May high)...
Daily chart pattern – Bearish breakout from rising wedge
Failure to hold above 50-DMA if followed by bearish break from rising wedge on day end closing basis coupled with daily RSI breaching rising trend line and falling money flow index would signal a sell-off to 173.80 (Aug 5 low).
On the higher side, only day end close above 50-DMA would signal bearish...