Identifying the Potential of Trends for the Week Ahead (1/11/15)

Alexey Panasenko |

Forex technical analysis helps to answer the questions: How to interpret Forex rates? Buy? Sell? Close a trade? Take profit or let it run for some more time? Will it face reversal or go trhough correction? Accept a loss and “flip over” or wait for some more time? Finally, how to define Forex trend?” All these questions drive a trader (mainly beginning) crazy, if he does not know the answer. By the way, who will dare to claim to know the answer? Forex exchange rates are cruel towards one's self-confidence and arrogant manner.

Nevertheless, it is subject to regularities and daily technical analysis forex. There are plenty of strategies on Forex trend lines. We are not so much interested with the direction of fx rate along major lines (this is interesting too, though) as with the Potential of the Forex trend. The main purpose of our Forex technical analysis report named "Potential of Trend" is to find if current price goes through correction either we face a trend.

S&P 500

Monthly: the index approaching strong support 1881.4 (the bottom Bollinger band), which, with high probability, will lead to a rebound toward the middle band (2029.8)

Weekly: ADX is only gaining momentum, so we are still based on the same scenarip (upward bounce from the area ??1881.4)

The daily chart: a similar picture.

Expectations: drop to 1881.4 and then rebound to 2029.8

solutions: purchase from 1881.4 to 2029.8

Brent

Monthly: sensational drop of the bottom Bollinger band for more than $4! The medium-term goal at the moment is 20.60! And it seems that we will see this goal as early as the beginning of spring

Weekly: ADX is gaining momentum, so it is almost guaranteed that oil prices will fall.

The daily chart: the oscillator shows signs of convergence, but we understand that the downward trend is not caused by technical factors, there is no reason to think that such a simple bullish signal can stop bears.

Expectations: So, we wait for continuation of decline in the medium-term goal towards 20.60. This week may the price may test the mark 30 US dollars per barrel.

Trading solutions: we shall sell 30 and in the medium-term to 20.60.

Gold

Monthly: technical correction in the direction of the middle Bollinger band (1183.65)

Weekly: local resistance 1112.61 (the middle Bollinger band), but attack of buyers is impressive, so we can expect the move to 1183.65 (the upper band)

The daily chart: the upper Bollinger envelope is broken, so resistance 1112.61 is unlikely to deter bulls. The best possible area for purchases - 1073.54 (the middle band).

Expectations: So, we wait for touch of 1073.54 zone, and then rise to 1183.65

Solutions: purchases from 1073.54 to 1183.65

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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