AUTHOR: DANKRA 19 JULY 2013 9:17 Pivot points have been mentioned in some of our earlier blog posts, but in this article, we want to add some meat to the bones by explaining to traders and readers of this blog what pivot points really are and how they can be utilized...
Well here you have it... surprises upon surprises. I said it once and i will say it again NEVER bet on this world cup. anything can happen. See what German Machine did to Samba Boys. Very sad... better luck next time Brazil :(
Emini S&P has not had a single losing month this year & only 1 losing week in the last 12. Thursday we beat 1970/71 to hit our next target of 1974/75 which held for a couple of hours, before we headed for the next target of 1979/80 & topped less than a point below. If prices continue higher today look for 1983/84 then 1988. You can only wonder if the huge psychological resistance at 2000 will then hold us back.
GBPUSD retested the highs at 1.7175 as predicted on Friday & topped almost exactly here at 1.7170. Outlook remains positive despite the overbought conditions. On a break higher today we look for 1.7195/00 then 1.7225.
Gold topped out last week at 1333, exactly as predicted. The bounce on Friday was to be used to enter fresh shorts with resistance at 1325/26 but prices topped just below at 1323. Outlook remains negative & we could resume the longer term bear trend this week.
EURUSD was unable to beat 1.3700 as forecast last week & headed lower breaking the 2 week recovery to resume the 2 month bear trend. A break below 1.3580 today keeps the market under pressure for 1.3571 then 1.3550.
WTI Crude continued lower last week & exactly as predicted headed for support at 103.60/50 for a buying opportunity. We forecast a good chance of a low for the day & prices bottomed almost exactly here at 103.67/64 at the end of last week. This should hold the downside again today but as stated on Friday, longs need stops below 103.10.
Brent Crude continued lower to good trend line support at 110.70 & short term Fibonacci support at 110.40/35. We forecast a good chance of a bounce from here & exactly as expected prices bottomed within this range at 110.53/51 last week. However bulls need a quick recovery above 110.75 today.
Natural Gas severely oversold as we test important support in the 4340/30 area. We did see a low for the week here last week exactly as predicted. We now expect a recovery to take prices back up to 4390 & perhaps as far as resistance at 4415.
Gasoil testing support at 898/896 & bottomed here so far, exactly as forecast. A good chance of a recovery now to target 905 & possibly as far as 909.
Dax all time highs at 10038/49 of course are crucial today. We are only overbought in the short term so a break higher cannot be ruled out & could target 10084/89.
Failure to break higher however does leave a potential negative triple top pattern. It's only a small pattern but in theory this does have very negative implications for this week at least. Some short term profit taking rather than a significant sell off is expected & should offer better buying opportunities.
FTSE managed to hit our target of 6825 & topped almost exactly here at 6829. Short term we are overbought but we cannot rule out further gains to 6835/40.
AUDUSD hit good support at 9324/20 to bottom almost exactly here at 9327 last week. We wrote: ''This is the best chance of a low for the day but longs need stops below 9300.'' This forecast worked perfectly as the pair recovered to 9363. Again today the 9327/20 is important support & could hold the downside.
You are driving down the road in your car on a wild, stormy night, when you pass a bus stop and you see three people waiting for the bus:
1. An old lady who looks as if she is about to die.
2. An old friend who once saved your life.
3. The perfect partner you have been dreaming about.
Which one would you choose to offer a ride to, knowing that there could only be one passenger in your car? Think, before you continue reading.
This is a moral/ethical dilemma that was once actually used as part of a job application. You could pick up the old lady, because she is going to die, and thus you should save her first. Or you could take the old friend because he once saved your life, and this would be the perfect chance to pay him back. However, you may never be able to find your perfect mate again.
The candidate who was hired (out of 200 applicants) had no trouble coming up with his answer. She simply answered: "I would give the car keys to my old friend and let him take the lady to the hospital. I would stay behind and wait for the bus with the partner of my dreams."
Sometimes, we gain more if we are able to give up our stubborn thought limitations. Never forget to "Think Outside of the Box."
However, the correct answer is to run the old lady over and put her out of her misery, have sex with the perfect partner against the bus stop, then drive off with the old friend for some beers.