Tuesday, August 28, 2012

Morning Market Analysis

The two charts above (a daily and weekly gold chart, respectively) show that gold has stopped consolidating between ~150-159 and advanced through resistance.  Notice how the weekly chart's CMF telegraphed this event by continually advancing for the last three months.

The euro has broken out of its downward sloping channel and is now moving higher.  However, this is not a very strong breakout.  There is no accompanying volume spike and we don't see prices exhibiting a runaway rally.  Instead, prices are moving higher in an upward sloping channel.  However, for only the second time in the last six months, notice the 10 day EMA has moved through the 50 day EMA with the 20 day EMA about to follow.

The Brazilian market -- which had broken out of a bottom consolidation -- has fallen back to support.  The market is also receiving support from the 50 day EMA.  However, this appears to be a standard, post-break-out profit taking situation.

The Spanish market has also bottomed and made an upside break-out.  Prices are now using the 50 day EMA for technical support and the 200 day EMA for resistance.  The next big area of movement is obviously the 200 day EMA.