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MNI DAILY TECHNICAL ANALYSIS - Equity Recovery Targets ATH

Story

Price Signal Summary – Equity Recovery Narrows in on ATH

  • S&P E-Minis have started the week on a bullish note, extending the recovery from last Tuesday’s 5855.00 low. Recent weakness appears to have been a correction. Medium-term trend signals such as moving average studies, continue to highlight a dominant uptrend. A bearish theme in the Eurostoxx 50 futures contract remains intact and short-term gains are considered corrective - for now. A fresh cycle low last week marked a resumption of the downtrend that started Sep 30.
  • Recent short-term gains in AUDUSD are considered corrective and a bear cycle remains in play. Support at 0.6513, the Nov 6 low, has recently been cleared and price is through 0.6490, the 76.4% retracement of the Aug 5 - Sep 30 bull leg. The USDJPY trend condition remains bullish and the pair is trading closer to its recent highs. Support to watch is the 20-day EMA, at 153.64.. It has been pierced, a clear break of it would signal scope for a deeper short-term corrective pullback. A downtrend in GBPUSD remains intact and last week’s move lower confirms a resumption of the trend. This signals scope for a continuation near-term. Note that moving average studies are in a bear-mode set-up, highlighting a dominant downtrend.
  • The long-term trend condition in Gold is unchanged, it remains bullish and the Oct 31 - Nov 14 bear leg appears to have been a correction. Price has recovered from its recent lows and today’s move lower is considered corrective - for now. WTI futures traded higher last week. However, a bearish theme remains intact and attention is on $65.74, the Oct 1 low, and $63.90, the Sep 10 low and key support. For bulls, a stronger reversal to the upside would instead refocus attention on the key short-term resistance.  
  • Bund futures ended last week on a bullish note. The contract traded higher Friday and in the process traded more convincingly through the 20- and 50-day EMAs. This undermines the recent bearish theme and exposes 133.39, the 50.0% retracement of the Oct 1 - Nov 6 bear leg. The trend condition in Gilt futures remains bearish, however, a corrective cycle is in play and the contract traded to a fresh short-term high on Friday. Resistance at 94.73, the Nov 1 high, has been pierced. A continuation higher would expose 95.78. 

FOREIGN EXCHANGE    

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Price Signal Summary – Equity Recovery Narrows in on ATH

  • S&P E-Minis have started the week on a bullish note, extending the recovery from last Tuesday’s 5855.00 low. Recent weakness appears to have been a correction. Medium-term trend signals such as moving average studies, continue to highlight a dominant uptrend. A bearish theme in the Eurostoxx 50 futures contract remains intact and short-term gains are considered corrective - for now. A fresh cycle low last week marked a resumption of the downtrend that started Sep 30.
  • Recent short-term gains in AUDUSD are considered corrective and a bear cycle remains in play. Support at 0.6513, the Nov 6 low, has recently been cleared and price is through 0.6490, the 76.4% retracement of the Aug 5 - Sep 30 bull leg. The USDJPY trend condition remains bullish and the pair is trading closer to its recent highs. Support to watch is the 20-day EMA, at 153.64.. It has been pierced, a clear break of it would signal scope for a deeper short-term corrective pullback. A downtrend in GBPUSD remains intact and last week’s move lower confirms a resumption of the trend. This signals scope for a continuation near-term. Note that moving average studies are in a bear-mode set-up, highlighting a dominant downtrend.
  • The long-term trend condition in Gold is unchanged, it remains bullish and the Oct 31 - Nov 14 bear leg appears to have been a correction. Price has recovered from its recent lows and today’s move lower is considered corrective - for now. WTI futures traded higher last week. However, a bearish theme remains intact and attention is on $65.74, the Oct 1 low, and $63.90, the Sep 10 low and key support. For bulls, a stronger reversal to the upside would instead refocus attention on the key short-term resistance.  
  • Bund futures ended last week on a bullish note. The contract traded higher Friday and in the process traded more convincingly through the 20- and 50-day EMAs. This undermines the recent bearish theme and exposes 133.39, the 50.0% retracement of the Oct 1 - Nov 6 bear leg. The trend condition in Gilt futures remains bearish, however, a corrective cycle is in play and the contract traded to a fresh short-term high on Friday. Resistance at 94.73, the Nov 1 high, has been pierced. A continuation higher would expose 95.78. 

FOREIGN EXCHANGE    

Keep reading...Show less