Traders Report November 19th

Traders Report November 19th

Australian shares have fallen for the third day in a row. The technical’s show that the index fell straight through the support level of 5420 and closed at it’s low today of 5352. This level was the support low seen in April to June. If the price falls through this price level then it is likely to signal further weakness and the index could then begin to fall all the way down to the low’s seen in mid October.

In contrast the US markets are continuing it’s bullish run with the S&P500 index making a new high overnight. It is clear that the Australian market is trading independently of the larger US market and is failing to follow it’s lead. This may signal that investors and traders are bearish about Australian market conditions and see better value in other markets. A pull back in the S&P500 index is likely to be supported at the resistance level of 2020 points.

I am neutral at present and not entering any long trades on the Australian market until I see evidence of the support level at 5350 holding and retracing above 5420.

Happy Trading

Flavio

All Ords Index
All Ords Index

 

S&P500 Index
S&P500 Index

Traders Report November 17th

Traders Report November 17th

All Ords Index 

The Australian Sharemarket lost ground last week and retraced slightly. From a technical perspective the index reversed at the resistance level of 5520 which was established from the peaks of April May and June as seen on the chart below. The current support level sits at 5420 which was formed by the pivot low seen in August. If the index falls through this price level then we could see the index price falling all the way back down towards the support level of 5360 which formed the base of the trading range seen from April to July. Clearly for the index to push higher it will need to break through the resistance level of 5520.

All Ords Index
All Ords Index
CORPORATE TRAVEL MANAGEMENT LIMITED (CTD)

The chart shows a nice up-trend in the share price with a breakout from the pennant formation on Friday. Volume was good which indicates the breakout has momentum. Short term traders could look to enter on Monday within the boundary of Friday’s breakout candle with stops under $9.50.

Corporate Travel Management
Corporate Travel Management

Happy Trading

Flavio

 

Wall Street Traders Report October 29th

Wall Street Traders Report October 29th 

Welcome to my first blog for several months. I took a few months off from trading to work on my trading plan and to focus on fine tuning my exit strategy. It ended up occurring at an opportune time with the markets dropping heavily in the months of September and October when I was not invested in any trades. As a trader I think it’s good to have a break from trading and to sit back and see how the market behaves without the emotion involved in holding trades.

Looking at the Dow Jones Index and the S&P500 index below it can be see that the markets were heavily sold off in late September and into October. The markets have since rallied from mid October and are closing in on the first resistance levels as depicted in the charts below. After such a strong rally prices may start to blow off and sellers may be tempted back into shorting positions with buyers also off loading long positions.

At this stage I am going to be sitting on the side-lines until either the first resistance level is overcome with the more likely scenario being that I will not enter the markets again until all time resistance in both the Dow Jones and the S&P500 is cleared.

I look forward to providing more regular blog articles in the coming weeks.

Happy Trading

Flavio

S&P500 Index
S&P500 Index
Dow Jones Industrial Ave Index
Dow Jones Industrial Ave Index

ASX Traders Report July 21st

ASX Traders Report July 21st

Australian Sharemarket

The Australian sharemarket has been able to rally over the past fortnight with the All Ordinaries Index rising 0.8% last week and within touching distance of it’s resistance level. The chart below demonstrates the sideways movement of the index over the past three months with prices supported at 5,350 points with overhead resistance in the region of 5,540 points. On Thursday prices attempted to breakout above the resistance level but were pushed lower towards the close with the formation of a long tailed reversal candle.

The overall picture indicates that bulls are trying to push the markets higher but have been met with selling pressure at current levels. In order for the All Ords to push higher prices will need to breakout and close above the resistance level of 5,550 points. Any further declines from current levels are likely to be halted by the support price of 5,350.

Daily Chart All Ords Index
Daily Chart All Ords Index
Lonestar Resources (LNR)

Lonestar Resources, Ltd. is a leading independent oil and gas company involved in exploration, production, and acquisition of unconventional oil and gas reserves. 

The share price has been in a strong up-trend for most of 2014. Friday saw a bullish candlestick rising through resistance on strong volume. There could be further up-side left in this share but volatility is high and traders do need to be careful after such a strong run up that prices could be extended. In situations such as this I make sure I have a tight stop loss in the event that prices turn downwards quickly. I will wait for the opening of the markets on Monday to see if prices can open above the previous high of $0.51. If this occurs then a limit buy order in this area can be covered with a stop loss under Friday’s low of $0.48.

Happy Trading

Flavio

Daily Chart Lonestar Resources (LNR)
Daily Chart Lonestar Resources (LNR)

 

 

 

 

 

Wall Street Traders Report July 4th

Wall Street Traders Report July 4th

Goldman Sachs (GS)

The Goldman Sachs Group, Inc. is global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.

The chart below shows it’s share price over the past seven months. The downtrend was broken in mid June with prices consolidating above the 200 day moving average. Over the past fortnight the price has retraced to form a bullish wedge. Yesterday saw a bullish candle breakout from the wedge pattern. This is my signal to enter a long position trade.

On this setup I will look to go long at a price of $168.00 with a stop-loss under the wedge low of $166.00. My initial target will be the resistance high from March of $175.00.

Happy Trading

Flavio

Daily Chart Goldman Sachs (GS)
Daily Chart Goldman Sachs (GS)

 

 

Forex Traders Report June 24th AUD/USD

Forex Traders Report AUD/USD

The Australian Dollar (AUD) has shown bullish price action against the US Dollar (USD) for the best part of 2014. Since reaching a low of $0.8660 in late January the AUD has been in a steady up-trend with prices currently hovering around $0.9400 for an increase of just over 9% in this time.

Over the past three months the price has been trading in a range between a support low of $0.9200 and a resistance high of $0.9400. This trading range has been highlighted on the price chart below as the rectangled area. The bull rally from February to April has stalled with bulls and bears currently trying to establish control. If the bulls are to win this battle then the price needs to breakout above the resistance high of $0.9400. A breakout above this level should see further buyers pour into the market and push prices higher towards the next resistance level of $0.9600.

If prices fall back towards the support level of $0.9200 and break below this price then the bears will have established control and this could result in prices falling back towards the next support level of $0.9100.

At this point I am neutral the AUD:USD and will wait to see which side of the congestion pattern prices break through.

Happy Trading

Flavio

Daily Chart AUD/USD
Daily Chart AUD/USD

 

Wall Street Traders Report June 9th

Wall Street Traders Report June 9th 

General Motors Company (GM) 

General Motors Co. is an automobile company, which develops, manufactures and markets cars, trucks and parts worldwide.

The technical chart setup is detailed and explained below.

Chart 1: General Motors
Chart 1: General Motors Co.

Technical Pattern: Inverse head and shoulders with prices trading above the 200 day moving average.

Signal: Breakout from neckline resistance three trading days ago. Friday’s candle shows a rejection of the neckline resistance which has now turned to support.

My Trade Strategy: to go long on the open of the market provided the price open’s above $36.00 with my stop loss just under the 200 day moving average (approx $35.20)

Happy Trading

Flavio


 

Traders Report: Gold Price Falls

Traders Report: Gold Price Falls 

Gold prices suffered heavy losses overnight and fell to its lowest level in close to four months. Safe haven investor appetite has diminished with signs of US economic improvement and a more politically stable Ukcarine causing money to flow out from safe haven commodities such as Gold and Silver.

The chart below shows the price of Gold forming a symmetrical triangle over the past 3 months. The lower support trend-line was breached yesterday with a domminant bearish candle showing strength in the bears conviction to drop prices.

After such a strong move down it is possible that the price may steady and retrace back up towards the bottom trend-line which would then be expected to act as resistance. I see this area as being a good place to consider a short position.

In this situation I will sit on the sidelines and wait for an appropriate signal to trigger a short trade such as a bearish candle stick pattern at the resistance level to indicate that bears have re-gained control to push the price lower.

Happy trading

Flavio

Gold / US Dollar
Gold / US Dollar