I am still long the gold for the real long term, other than that, as planned last month i was short some calls when sp was trading around 200 day MA, but now i covered them as the market getting close to the support, and european indices are trading around 50 day moving average although the short term momentum is still down.
Lets have a look at the charts. Check the sp index daily graph below:
As you can see, sp index traded 1296 when the news of an aggrement among eurozone leaders hit the market and european shares traded around 5 % higher for the day. After then, there have been quite some sessions where 20 day moving average acted as support and 200 day moving average was the resistance. The markets will probably test 50 day MA soon which is around 1205.
The weekly chart is below:
Both 50 week and 20 week MAs are flat, indicating a sideways priceaction for now, 50 week MA as the resistance for now around 1270. Weekly momentum is still bullish.
BAsed on the current price action, I am looking to get long only when the daily momentum turns bullish.When i check the indicators, it doesnt look likely soon, maybe next week, but 200 day MA resistance sits tight around 1270, so the upside is limited for now. That being the case, I am waiting for an upmove, to short the market once again close to the 200 day MA.
No comments:
Post a Comment