AUS200
Dominant bias: Bearish
On this market, a bearish
signal was generated last month, when the market lost over 23,000 points. This
has resulted in a Bearish Confirmation Pattern, as this month was also opened
on a strong bearish note. The market has lost more than 10,000 points this
month, and this is just the beginning. In June, it is expected that AUS200 would
lose at least, 20,000 points (10,000 points having been lost already). Thus, the
support lines at 5630.00, 5600.00 and 5570.00 would be targeted and possibly be
exceeded as the market goes further southwards.
SPX500
Dominant bias: Bullish
SPX500 consolidated from May 3
to 16, and then nosedived to test the support level at 2346.0. After that,
price assumed a strong bullish movement as it rose over 800 points, ending May
on a strong bullish note. SPX500 has
done nothing significant this week, save roughly sideways movement – in the
context of an uptrend. The current consolidation may continue for the next
several trading days, but when momentum rises, it would most probably favor
bulls as price goes further north. The bullish bias on the market is far from
being over.
US30
Dominant bias: Bullish
US30 as usual, is normally
correlated with SPX500. The movement in the market in May, plus what has
happened so far this month, is quite similar to the movement on the SPX500. Price
consolidated between May 2 to 16, and then pulled back to test the accumulation
territory at 20496. More pullback was rejected as price rose by roughly 600
points, seeing the month of June start with a strong bullish propensity.
Nonetheless, the market has not done anything significant after that, save the
ongoing sideways movement in the context of an uptrend. There would soon be a
breakout which would most probably favor bulls.
GER30
Dominant bias: Bullish
This is a bull market, but
things are quite rough. The last 2 weeks of May were particularly choppy, with
no directional movement. Should the current condition of the market continue
for the next several trading days, the bias on the market would become neutral
in the short-term (whereas the long-term bias would remain bullish, as long as
the market does not lose 5000 points from here). In spite of the extant choppy
condition, the outlook on GER30 remains bullish for the month of June. So,
price would eventually go towards the initial supply levels at 12850.0, 12900.0
and 12950.0. The first two supply levels were previously tested.
FRA40
Dominant bias: Bullish
FRA40 was caught in an equilibrium
phase in the last 2 weeks of May, while the bullish bias on the market remained
intact. In June, a bearish signal has been generated in the short-term, while
the long-term bias remains bullish (but threatened). The short-term bearish
signal was caused by a 700-point bearish movement that occurred since the
beginning of June. A movement towards the demand zone at 5090.0 would
invalidate the dominant bullish bias, though that would require a heavy selling
pressure in the market. A serious movement to the upside would override the
short-term bearish signal in the market, and strengthen the dominant bullish
bias.
Source: www.tallinex.com
Traders’ Mindset: Traders' Mindset
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