Wednesday, October 28, 2015

Oil update: Approaching a short term reversal point

Oil is currently moving towards support zone at 40-41.8 as we predicted in a previous post(Oil is probably forming a diamond: Reversal or Continuation?).Today and tomorrow we expect a fast move towards this support zone and then a bounce towards resistance zone at 44-46$.
Keep always in mind the big picture

Monday, October 26, 2015

EURUSD: Bullish until late 2017? A long term Road-map

The big picture (monthly) chart of EURUSD is as follows:It is in a long-term downtrend.RSI has recently bounced of oversold territory.Probably we are at the end of wave 3 (or early stages of wave 4).Wave 4 should take us towards around 1.24 until late 2017.Then a last leg down and a bottom around:
A)0.8 on summer 2019(blue scenario)
B)0.95 early 2019 (black scenario)

Saturday, October 24, 2015

Nat Gas is returning to where it started (1.95$)

Natural gas is in a well established downtrend since early 2014.Historically Natural gas prices during the months from November to mid-February are weak

It took about 22 months for Natural gas to climb from 1.95 to almost 6.5 (2012-2014).If market obeys to some kind of symmetry then Nat gas will be at 1.95 around Christmas time where it should complete a five wave down movement.

Wednesday, October 21, 2015

Crude oil at 21.5$ by next summer?

If history tends to repeat

 and the diamond pattern we noticed in a previous post(Oil is probably forming a diamond: Reversal or Continuation?) turns to be a continuation pattern then there is a good possibility that crude oil can touch 21.5$ per barrel on mid-summer 2016

Monday, October 19, 2015

Oil is probably forming a diamond: Reversal or Continuation?

Back in late July we predicted accurately the bottom for Oil and XLE(Oil at crossroads). Also we predicted very well the course of oil price after the bottom (Are better days coming for oil? 2 possible scenarios.).Oil followed our prefered scenario(bounced twice at 48-50) 

We still believe that oil will follow this scenario

 So if we look at the big picture, oil can form a diamond pattern.We believe that around christmas- new year oil will decide if this diamond will be a reversal or a continuation one.

Respectively currently we have the follow projection for XLE

Saturday, October 17, 2015

Falling VIX as SPX approaches significant resistance

Last weekend (SP500(SPX): A bear flag is forming...) we expected the SPX to move lower during the previous week.However SPX managed to slowly move higher.Currently there is a significant resistance zone at 2040-2060.We still believe that the current formation since late August is a bear flag.

VIX is falling rapidly suggesting increasing complacency. MACD (of VIX) is moving fast to negative territory and RSI is already near 30 which means that sooner rather than later VIX will get oversold and an increase in volatility will ensue along probably with a new downmove of SPX.

We believe that next week SPXwill form a small rising wedge towards 2040-2060 where it will probably reverse hard.

Tuesday, October 13, 2015

Russell2000 2006-2008/ 2014-2016: An Analog

These days there is a lot of bearish talking regarding equities across the entire blogosphere. Many people are getting ready for an imminent black-swan type of event.However if we check Russell's 2000 chart we can see that back in 2008 it took about 3 years for the RUT to form a proper Head and Shoulders pattern.It took approximately 1 year for each stage of the formation.So back to the present situation we can see that RUT was rangebound during 2014(Left shoulder?) and then went higher and stalled in 2015(head?).If we use RUT price history as our guide for the future then probably Bears have to go to sleep for most of 2016. 

Saturday, October 10, 2015

SP500(SPX): A bear flag is forming...

SP500 (SPX) is probably forming kind of a bear flag which probably will signal the continuation of the recent downtrend.Currently as we noted yesterday there is lots of resistance at 2020(Lots of overhead resistance for SPX today). A weak support line lies at around 1915 and then there is some significant support from the lower trendline of the bear flag.For the next couple of weeks we expect a move towards the lower line of the bear flag.However this line probably will hold at least temporarily and a bounce towards 1975 is very likely.

Wednesday, October 7, 2015

Has silver's long awaited bull started?

Recently silver had a quick strong upmove and managed to break above resistance at 15.5. Despite the recent upmove we remain neutral on silver.It seems like it is forming a rising channel (neutral-bullish scenario) or a rising wedge (bearish scenario). Currently there is an important rising support line (the lower line of the channel/wedge) which is very critical. As long as silver stays above that line a significant bull move is on the cards. A break below that line can signal the continuation of the long-term downtrend for silver.
1.Neutral scenario(60%)

2.Bullish scenario (30%)

3.Bearish scenario (10%)
To summarize:(For the next 1-2 weeks) A sustained move above 16.00 will be very bullish for silver.We will remain neutral between 16.00-14.65. A quick move below 14.65-14.75 will turn our view on silver bearish again

Saturday, October 3, 2015

Copper: Trading setups for a bear continuation and for a possible reversal

Copper is currently in a longterm downtrend.

Today we are presenting 2 trading set-ups:
1.Bearish set up

At 2.40 there is significant resistance from the descending trendline. We will sell at 2.40 with a stop-loss(SL) at 2.41(SL is activated only if the price closes above 2.41).If price moves downwards towards our first target at 2.26 then we will move our stop-loss order to 2.33.Second target for this trade is 2.20.
Currently we favor the bearish scenario as Copper is in a longterm downtrend and we prefer to short the rallies rather than try to catch the knife (=bottom)

2.Bullish set-up

If price manages to break above 2.40 , it will probably move towards 2.50 where it should bounce.In that case our long order will be at 2.43 with SL at around 2.42 (again SL is activated only if price closes below 2.42).First target for this scenario would be 2.57.

Any opinions and ideas expressed herein are only opinion and for informational purposes only.Nothing on this blog is to be considered a buy, sell or hold recommendation.Always do your own due diligence

Friday, October 2, 2015

Silver out of the woods? not yet...A pathway for the next days

Silver is in a triangle formation.There is significant resistance at 15.50 level.Currently silver is moving towards 15.50.We believe that silver won't break 15.50 and will slide towards the support line of the triangle at around 14.6. 
At that point silver will either(red line scenario) break below support and move towards 13.5 or it will bounce and retest 15.50.A break above 15.50 (green line scenario) will lead silver towards 16 and then probably it will retest 15.50 as support.

TLT moving on....

During the last 1.5 months TLT is moving according to our previous prediction (QE...4?)

Today TLT is hovering just above the resistance level of 125.If TLT manages to close today or early next week above 125 probably it will bounce at around today's high 126.2 and move towards 124 where we can see another good entry point.