TickerSense's  Instablog

Send Message
Ticker Sense is managed by Kevin Pleines, an equity market analyst at Birinyi Associates. Posts and articles are added by Kevin and the other analysts and traders at Birinyi Associates. Birinyi research and commentary is regularly featured by the New York Times, Wall Street Journal, Financial... More
My company:
Birinyi Associates, Inc.
My blog:
Ticker Sense
  • Euro Trading Range - Nearing Oversold Level 0 comments
    Sep 8, 2010 11:22 AM | about stocks: DRR, EEN, FXE, ULE, EUO

     The Euro's 4.4% decline since August 6th has the currency trading down near oversold levels.  Currently at 1.2690, the bottom of the trading range is 1.2645.  In the past the 50-day average has been a good indicator of trend.  On 12/10/09 the Euro broke down to oversold levels; the initial decline was followed by a change in trend which lasted through the first half of the year.  The overbought condition on 7/5/10 was followed by continuation of the rally.

    Currently the 50-day average is in an uptrend and traditional overbought and oversold analysis says that oversold in an uptrend equals a buying opportunity.  As shown below, on 12/10/09 that analysis could not have been more wrong.  Wait to see if the trend changes before making any decision on the Euro's direction.

    Euro trading range 

    Disclosure: no positions

    Stocks: DRR, EEN, FXE, ULE, EUO
Back To TickerSense's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.