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newdigital, 2014.04.05 17:24
The NASDAQ initially try to rally during the week, but as you can see
found the 4300 level to be a bit too resistive. Because of this, we
ended up forming a massive shooting star, but we are sitting right on
top of a massive hammer from two months ago. With that, we feel there is
far too much support all the way to the 4000 level to start selling,
and quite frankly would feel much more comfortable buying a supportive
candle if and when it prints. At this moment, we are on the sidelines.
newdigital, 2014.04.05 17:59
The S&P 500 as you can see rallied during most the week, but he got
beat back just underneath the 1900 level in order to form a massive
shooting star. That shooting star of course suggests that there is
weakness coming into the marketplace, but we see so much support at the
1840 level that it’s almost impossible to start selling here. With that,
we are bullish long-term, but recognize that a little bit of
consolidation may be coming. As far as support is concerned, we see all
the way down to the 1780 level.
newdigital, 2014.04.05 18:00
The Dow Jones 30 tried to rally during the week, and although it did
keep some of the gains, we saw a significant sell off at the 16,600
area. Because of this, we ended up forming a shooting star and we
believe that this market may pullback a little bit from here. We don’t
look at this is a selling opportunity though, we actually look at it as a
continuation of the consolidation that we’ve seen for so long. There is
a significant amount of support below, so at this moment in time we are
looking for supportive candles below in order to start buying again, or
a break of the highs.
newdigital, 2014.04.05 18:02
Silver markets did almost nothing during the week, so therefore there
really isn’t a whole lot to look at when it comes to this chart.
However, gold looks like it’s trying to bottom, so perhaps silver is to.
We still see the $19 level is massive support, so therefore we can’t
short being that close to it. On the other hand, we need to see at least
a close on the daily chart above the top of the weekly candle here in
order to start buying, which we think would release this market to go to
the $22 level.
newdigital, 2014.04.05 18:05
That being the case, we feel that until we get below the $97 level, it’s
impossible to sell this market. That’s especially true with the hammer
being formed, as it is such a bullish sign. We believe that ultimately
this market will continue to drift higher, probably as high as $110 over
the next several months
The Brent market fell during the majority of the week as well, but did
find the $104 level to be supportive. That area has been supportive in
the past, and the fact that the candle formed a hammer for the week,
suggests that we are going to have plenty of support underneath going
forward. With that, we are much more bullish again, and we believe that
we heading towards the $112 level given enough time. It isn’t until we
break below the $104 level that we feel that this market starts to
really lose its luster.
On top of that, the $102 level should be supportive as well, so really
we don’t have a scenario where we feel comfortable selling. On top of
that, it appears that the employment situation in the United States
picking up, so that will drive demand for commodities in general. Going
forward, we would expect pullbacks to continue to offer buying
opportunities in a market that certainly seems to have a bid in it at
the moment. However, all things being equal we actually prefer the light
sweet crude market over the Brent market, as it is more favorable to
North American consumption.
newdigital, 2014.04.05 18:06
newdigital, 2014.04.05 18:08
The gold markets fell initially during the week, but as you can see
found enough support below the $1300 level to bounce and form a hammer.
This hammer suggests that the market is going to go higher, something
that we see on the daily charts as well. We believe the market will head
towards the $1400 level, and then possibly break out above there. We
are buyers on a break of the top of the hammer as it should continue to
show bullishness in this market as gold may have just bottomed and the
newdigital, 2014.04.05 18:10
The USD/JPY pair rose during the bulk of the week, but fell backwards
and formed a shooting star. This suggests that we are going to continue
to bounce around in the consolidation area that we’ve seen recently, so
while it is a bearish signal, we believe that there’s enough support
below to keep this market somewhat afloat. That being the case, we feel
that the market will be a “buy on the dips” type of situation, and
believe that that opportunity will present itself rather soon. Selling
is not an option.
newdigital, 2014.04.05 18:11
The USD/CAD pair fell during the bulk of the week, breaking below the
1.10 level. That of course is a negative sign, but we see support only
down to the 1.09 handle, so even though we’ve had a fairly negative
week, it would not surprise us at all to see support come back into the
marketplace in this general vicinity. Right now, we do not have a trade
signal at all but are paying attention to this next week as it could be
pivotal for our positioning in this market going forward.
newdigital, 2014.04.05 18:12
The NZD/USD pair spent most of the week falling, but as it approached
the 0.85 level, found enough buyers to push the market back up. The
resulting candle is somewhat of a hammer, and it tells us that the
market is more than likely going to try to continue to go higher, and a
break of that high has this market looking for the 0.90 level given
enough time. The 0.85 level is now support as far as we can tell, and in
fact we considered it the “floor” of the market.