For the timebeing it seems like the close below the support level was a BEAR TRAP. That does not mean that prices will jump up straight away... They can though the probability is less. The trade above supportlines tells you that shorts taken considering the piercing of support levels should be closed right away or headged atleast. If we have a positive day today and day after -- there can be enough momentum to take the indices few percentage points higher. Similar thoughts for DJIA.
Gold is again getting sold off today, the back and forthe action in gold considering the hammer formed as support is good for prices in long term. It would shake off the weak hands. Though there is a possibility that we may be forming a bear flag on daily. So lets us see.... Dont expect the prices to go higher appreciably (5% or more) for next few weeks. Technical damage done has to be set right. Similar thoughts for Silver.
USD continues its upward journey. Lets see how far can it go. Its the best currency for short term, though it is highly overbought.
No comments:
Post a Comment