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Futures Trade Desk- Bullish Undertones Face Resistance

Client Note

Bullish Undertones Face Resistance


Commodity Update

Long Commodity trends that are over-bought may create intra-day short reversals, but seem unlikely to change the overall trend. The Commodity outlook remains bullish in light of heightened Middle Eastern tensions.

Gold: Sup 1552 Res 1632 Neutral 1592. Silver: Sup 27.10 Res 30.90 Neutral 29.00. Oil: Sup 97.95 Res 105.65 Neutral 101.80. 


Equity/Dollar Index Update

Long Equity Indices trends that are over-bought may create intra-day short reversals that could change the overall trend. The Equity Indices outlook is very mixed going into Earnings Season. 

Short Dollar Index trends that are over-sold may create long intra-day reversals, but seem unlikely to change the overall trend. The USD outlook is very mixed, and moving inversely to Equity Indices trade.

S&P500: Sup 1242 Res 1296 Neutral 1270. Dax: Sup 5925 Res 6420 Neutral 6055. DXY: Sup 79.40 Res 80.80. Neutral 80.10.


Currency Pair Update

Long Currency trends that are over-bought, or Short trends that are over-sold, may create intra-day reversals, but seem unlikely to change the overall trend. The Currency outlook remains bullish against the dollar, with sustainable USD buying only being seen on days of heavy Equity Indices selling.

EUR: Sup 1.2870 Res 1.3170 Neutral 1.3020. GBP: Sup 1.5540 Res 1.5775 Neutral 1.5605. JPY: Sup 76.40 Res 77.10 Neutral 76.75.


Current Global Market Outlook

Global Market Review


When 4-hour chart trend and momentum reads are aligned across Equity Indices, Commodity, and Currency asset classes, a trending market is more easily achieved, and trade exposure and initial targets are generally increased.

When trend and momentum reads are not aligned, a choppy and overlapping period of trade is more easily achieved, and trade exposure and initial targets are generally reduced.

A long trend that is over-sold generally sets up for a long reversal off support. A short trend that is over-bought generally sets up for a short reversal off resistance.

Markets that are over-bought into a long trend, or over-sold into a short trend, can remain that way for a long time. Any positions that are taken against the 4-hour trend will have to absorb choppy and volatile price action.

 

 

 

 

Information, analysis and methodologies provided are for informational purposes only, obtained from sources believed to be reliable, and should not be used as a replacement for research by an individual investor or licensed investment professional. In no event should the content of this correspondence be construed as an express or implied promise, guarantee, or implication that profits or losses can be made or limited in any manner whatsoever. No guarantee of any kind is implied or possible where projections of future conditions are attempted.