Despite the fridays close in red - US indices have closed in green for the week. As far as currencies are concerned --- USD was flat. We will cover the chart of USD as well. CHF had a big down week. This was the strongest currency in the world few months back and now its been taken down after being tied to Euro.
US indices are in red YTD. Gold still is up by 15% YTD but Silver is up barely 1%. USD is flat and other currencies against it are down baring JPY which is the strongest currency against USD right now. There are enough voices in Japan indicating that the export economy would move out to China/ ASEAN/ India incase JPY remains this strong.
Doji at the resistance of 50MA ensured that the day closed in red. The bear trap of last week means we still are in a trading range which needs to be broken for sizeable gains or we need to get into the mode of swing trading. A doji needs to be confirmed on Monday hence Monday price action would either strengthen down closing or negate it. Though the indicators are in buy, but price action is indicating otherwise. Similar thoughts for SPX on daily.
The hammer formation the weekly for both DJIA and SPX is an indication of the bear trap laid out this week. But since we are in non trending range, the significance of this candlestick gets greatly reduced. But for the time being 200MA on weekly has provided support to both the indices. Though now we have a situation where 50MA is rolling over in next few weeks which would provide strength to bears to take the prices further down.
Gold and Silver are consolidating in trading range. In a manner they are working of oversold conditions on daily. For the time nothing much to write but should be bought and accmulated not traded. Similar thoughts for silver though silver is the weaker of the two and can go down further from these levels.
Gold on weekly shows the bull run for the metal. No questions asked till technicals and fundamentals let us know we have to sell. Keep accumulating. Silver as well.
USD on daily is overbought and doji formation at resisatnce means there has been some profit booking. This might give some breathing space to markets and metals as far as it may consolidate incase it needs to go up.
Weekly shows a perfect doji because 50 and 200MA are going to converge and that is creating some profit booking. Though the series of higher highs and higher lows continue. Hence its a profit booking signal not a sell signal.
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