What we are watching?
Below are the 15 minutes charts for key markets we are following. We choose 15 minute as we think it is good for analyzing potential moves which will occur over the next 24 to 48 hours. We will come back later in the week with longer term views.
Please Note these are short term views: Let us know if you have other instruments you are focused on!
UK Brent has broken down, and as we discussed the difference between the spot price and the future price led us to think we would see the $30 level as difficult to hold. We have clients interested in buying after this big move lower and the cuts which have been agreed.
We doubt the cuts will be delivered as planned and we doubt that demand will pick up enough in the next few months to help the price trend higher.
We see the $30 as key resistance and support at $27.50
Our View: sell if tests $30 with stop at $32.50
Gold has performed impressively since breaking above the $1,650 and $1,680 resistance levels. Having reached a high of just under $1,750 the XAUUSD spot cross has retraced back to $1,713 currently. We think the market is going to test higher levels, but some sideways trading seems the most likely scenario in the short term. The $1,708 level has a double bottom and buying here with a stop below at $1,700/$1,705 level makes sense to us. Look for market to retest the $1,750 highs.
The DAX index is looking to us as though it will test lower in the near term. We see a rounding top, with a break of the trendline and think this opens up for lower levels in the short term. Resistance is at the 10,700 level and support is found at the 10,300 and 10,230 levels.
For a trade look for a bounce from oversold levels short term to sell with stop above the 10,700 level.
S&P 500 looks to us to be rolling over in the short term. We think it is a sell on a bounce as the index is oversold in the short term.
Sell at on a bounce to 2,830 with stop 2,860/80 level.
Target the 2,730 level.
This is based on the technical picture, but also our view that the market is overly optimistic regarding the near term upcoming pandemic developments.
EURUSD is rolling over after bouncing from just under 1.0800 level. Currently oversold, but looks as though lower levels are most likely in the short term.
|Ticker||Date Opened||Entry Price||Stop||Target Price||Current Price||% Change|
|Long EURCHF Put Option, Strike 1.0650, Expiry 15.4.2020||2020/01/15||1.0757 (Ask 0.00620)||1.05355 (Bid 0.01201) POSITION CLOSED||+2.06%|
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