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johnatan hammer
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trading stocks, currencies and commodities for more than 10 years. allways happy to learn new things and anyone i meet can be a teacher. i love to use technical analysis as a primary tool for investments or trades.
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  • Gold Chose Down

    Two weeks ago I read a recommendation from an analyst of Oppenheimer who argued (with common sense)that in light of a rising inflation around the world due to quantitative easing in many currencies as well as the expected interest rate increase next year the price of gold should start to change trend.

    This is the main problem in trading in commodities or currencies - just when you think you understand what affects the price you find it is no longer relevant.
    Gold started the trading week as he breaks 1550 support level down, completing a double top pattern (it was very tempting to use the triangle but I think the double top is more appropriate when using a monthly), and breaks the average 21 M.A. down.
    I think there are two main reasons for the sharp decline in price as manifested Aprils monthly candle
    1) The first reason for the sharp drop down to the $ 1,450 we see after breaking the $ 1,500 is the action of an automated orders- commands stop loss / stop-limit guided to close the position if the support level will be broken down. basically in only a few minutes we had thousands of sellers in the market which made the price of gold drop sharply down
    2) The second reason is a derivative of the first reason, about 80% of trading on the Stock Exchange is today is done by trading machines - computers connected to a bank account and have the ability to buy and sell freely and almost unlimited.
    When we notice the movement that seems to us irrational can be assumed that the Battle "between the number of algorithms try to get the best price.
    Due at least in the short term there is a high probability of correction downward trend upward.
    Sure medium / long I think there is a high probability of 50% correct upward trend beginning with the target in the $ 1,300.

    (click to enlarge)

    Tags: gold
    Apr 16 4:22 AM | Link | Comment!
  • Google, Beginning a Short Term Downtrend

    Google's buyers are running low and more sellers are entering.

    it's created a "head and shoulders pattern which indicates that at the moment there aren't a lot of buyers above the levels of $817.

    furthermore it broke the support at $791 along with the trend line and the 21 M.A. which also acted as resistance at $817 (the top of the shoulders).

    volume levels have also rising for the past couple of weeks- simultaneously with the beginning of the downtrends.

    good chance it will try to hit next resistance at $740 as long as it stays bellow $791.

    heads up- we have a $21 price gap bellow that next support- it is very possible chance it will be close.

    (click to enlarge)

    Tags: GOOG
    Apr 06 11:34 AM | Link | Comment!

    Weekly level -
    the stock broke a long range between the gates $ 22 - $ 32 which means it is on a move of $ 10 toward the gate $ 42.
    After the break-the price was supported on the $ 32 whinch means the market has shown a willingness to buy at the resistance.this is a permission from the marto continue upward trend.
    Despite declines in the last week shows that the share buyers entered were willing to buy at a price higher than the previous week's low.
    Bearish signs:
    By momentum indicators is possible technical correction before going process towards the gate $ 33.5 months.
    You can see that new records on the weekly level do not appear on the graph. However by the terms of our analysis this acts only as a warning signal and and not as a sign of bearish technical short sale.

    Daily chart confirms for us the weekly chart:

    You can see that the rate of resistance could not be broken 35.5 which can create a template head shoulders that could lower the stock price towards 34, it recommended me share purchase range with a stop - Los below - $ 34.

    (click to enlarge)

    Tags: WFC
    Mar 04 4:01 PM | Link | Comment!
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