Sunday, 1 January 2012

Analysis for Europe & US markets


US DJI has been resisted by the level of around 12285 and was not able to hold it well above that level.
Stochastic seems to be turning downwards.
Probability of DJI to come down further is high.
Support to take note will be around 11700.
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US S&P500 is forming a possible symmetrical triangle.
And it has been resisted by its 200MA.
Stochastic is showing signs of turning down.
The chances of S&P500 to come down is high.
Do look out for the breakdown of the lower trend-line support as massive selling may occur if it show break.
Support to look out for will be 100MA(around 1200 level) if selling were to occur.
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UK FTSE 100 currently is trading in range.
It is resisted by the 200MA and support by the 100MA.
Look to short at 5600 and long at 5338 levels.
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The Germany DAX is forming a possible symmetrical triangle.
Any breakup or breakdown out of the trend-line will determine the direction.
Chances of DAX breakdown is high given the uncertainty in the markets and DAX is showing a bearish divergence.
Do look closely cause DAX being the leader of EU will pull the other markets along with it.
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Personally I feel that the good news that has been coming out from US seems too good to be true.
Trade with care. :)

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