No Damage (Yet) to Downtrends in Gold, Oil, Euro/USD
Stock-Markets / Financial Markets 2011 Oct 10, 2011 - 10:41 AM GMTApart from Sunday's announcement from leaders Merkel and Sarkozy that both agree that European banks must be recapitalized (the details of which will have to wait until Nov 2), let's notice that today's almost euphoric reaction has propelled the Euro/USD as well as gold and silver only towards a test of their prior recovery highs.
In other words, from a technical perspective, none of the enclosed markets has inflicted damage to their post April-May downtrends, which must emerge at 1.3700 (euro/$), $1.680 (gold) and $33.70 (silver) to get some sustained positive traction.
While such a move could be in progress -- subject to headline risk (positive and negative) -- for the time being the technical set-up remains in the grasp of corrective bearish forces that project new lows in the days/weeks ahead.
ETFs to watch are PowerShares DB US Dollar Index (UUP), SPDR Gold Shares (GLD), and iShares Silver Trust (SLV).
Sign up for a free 15-day trial to Mike's ETF & Stock Trading Diary today.
By Mike Paulenoff
Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.
© 2002-2011 MPTrader.com, an AdviceTrade publication. All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.
Mike Paulenoff Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.