Dollar Index seems to have broken down from important trendlines and support levels. The trend is down in the Dollar Index which could be bullish for Equities and Commodities
Tuesday, March 22, 2011
Dollar Index in a downtrend
Dollar Index seems to have broken down from important trendlines and support levels. The trend is down in the Dollar Index which could be bullish for Equities and Commodities
Thursday, March 17, 2011
Death Cross in Nifty
In the Nifty 50 DMA has crossed below 200 DMS. This is potentially bearish. But like all other things in technicals it is not a 100% confirmed indicator. We need to see Nifty breaking down below 5400-5600 range and also below 5175 before getting bearish on the market.
Right now we have been in 5400-5600 zone for over 2 weeks and so a big move in the Index is expected. Which direction it will happen that the market will guide us. So have a close eye on the 5400-5600 region.
Right now we have been in 5400-5600 zone for over 2 weeks and so a big move in the Index is expected. Which direction it will happen that the market will guide us. So have a close eye on the 5400-5600 region.
Global Indices and Commodities Update
The risk markets (like equities and commodities) have all corrected and the risk averse markets like Treasuries and Dollar Index have been rallying as a result of the Japanese situations
Global Indices
SP500 has closed below 50 DMA and a key support zone at 1300. So it could very volatile here It has support at 1182.
Dow Jones has support at 11000.
Nikkei – obviously been devastated because of the Tsunami. It has support at 8800 but if that doesn’t hold the next support is at 7000, a level which we tested twice in 2008/09. The Kobe earthquake in 1994 led to 30% decline and stopped at a 1992 support zone of 14000.
FTSE has support at 5500 levels.
Commodities
Gold – key level to watch are 1400 and 1380…break of these numbers gives a target of 1300…and break of 1300 is very bad for gold.
Silver had strong resistance at $19 which it took out in july 2010 . Silver could reach a target of $39-40 but its becoming a crowded trade as everybody is bullish so its time to be a bit careful.
Crude Oil – the next support is at 96$..which is 50% retracement of rise from $85 to $107
Base metals – have all corrected below support zones and are expected to be sideways with a downward bias till the situation improves.
Global Indices
SP500 has closed below 50 DMA and a key support zone at 1300. So it could very volatile here It has support at 1182.
Dow Jones has support at 11000.
Nikkei – obviously been devastated because of the Tsunami. It has support at 8800 but if that doesn’t hold the next support is at 7000, a level which we tested twice in 2008/09. The Kobe earthquake in 1994 led to 30% decline and stopped at a 1992 support zone of 14000.
FTSE has support at 5500 levels.
Commodities
Gold – key level to watch are 1400 and 1380…break of these numbers gives a target of 1300…and break of 1300 is very bad for gold.
Silver had strong resistance at $19 which it took out in july 2010 . Silver could reach a target of $39-40 but its becoming a crowded trade as everybody is bullish so its time to be a bit careful.
Crude Oil – the next support is at 96$..which is 50% retracement of rise from $85 to $107
Base metals – have all corrected below support zones and are expected to be sideways with a downward bias till the situation improves.
Friday, March 11, 2011
Nifty Update
• Longer term trend will turn up if we close above 5800 and turn down if we close below 5175
• Intermediate trend will turn up if we close above 5600
• FIIs have stopped selling in a big way so that’s a positive
• Intermediate trend will turn up if we close above 5600
• FIIs have stopped selling in a big way so that’s a positive
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