Technical Analysis of Financial Markets

Wednesday, July 16, 2008

FTSE, 50% Fibonacci Retracement

Since October 2007, the FTSE has declined 35% in corrective A-B-C formation where wave C is currently progressing to complete a measured move equal to wave A; i.e. A=C. Completion of wave C also coincides with the 50% Fibonacci retracement of 5-year bull market rally which commenced in March 2003. This may establish an area of support at 5015 in the cash market. An entrance into a long position with a stop on a weekly close below 5000 may serve as low-risk trade.

Monday, July 07, 2008

DAX, 6200 Level

Short below 6200; long above.

Thursday, July 03, 2008

Eurasian Natural (UK:ENRC)

Eurasian Natural having rallied over 110% within a 7-month period has now broken support of the main trendline and is currently finding support at the 50% Fibonacci retracement of the rally. An entrance into a long position with stop-loss on close below the 50% Fibonacci retracement level at 1048 may serve as low-risk bounce trade from oversold conditions towards an initial target gain of 10% at 1168.