Even as we were writing our previous post on 4 May, the global markets were in the midst of developing bearish patterns. We discussed those with our subscribers at the time because we always keep the best information for our subscribers. We thought that the Australian market and in particular BHP would have one last attempt at a rally before plunging to lower prices. This was not the case. The European and Chinese economic numbers have hit many Australian resource stocks hard.
We now have an initial downside target for BHP of $28.50. How we came up with that figure is reserved for our subscribers.
What we have also told subscribers is this: The German DAX was heading to a low of 6000 as a first support level, based on its head and shoulders pattern.
We also advised subscribers of targets for the CAC40, the FTSE and the Dow Jones index. We are not there yet. We also discussed the gold price. While many people are looking at the breach of the long term trend line in gold, we were looking at the descending triangle set up. In our view gold will test $2100. We are in Australian listed PRU to capture a bounce in gold. We are trading PRU using our DEMAC bottom-feeder breakout and subsequent trend following technique. (To find our more, click here - its all in our EBook).
If you are Long the AUD agains the USD, beware that you are in the minority and if you think that this is a cool place to be, let me remind you that it is the majority who dictate market direction, not the minority. The USDAUD chart shows the USD making a rounding bottom pattern, with a potential upside target around $1.20, which places the AUD down at around 80 cents. That is currently 17 cents away from where it currently sits. Our analysis feeds off the sentiment of global Forex traders and investors and the chart indicates what they are betting on.
You can get regular updates from us, simply by purchasing our EBook, Simple Tactics, Profitable Trading via http://www.stpt.com.au/
We now have an initial downside target for BHP of $28.50. How we came up with that figure is reserved for our subscribers.
What we have also told subscribers is this: The German DAX was heading to a low of 6000 as a first support level, based on its head and shoulders pattern.
If you are Long the AUD agains the USD, beware that you are in the minority and if you think that this is a cool place to be, let me remind you that it is the majority who dictate market direction, not the minority. The USDAUD chart shows the USD making a rounding bottom pattern, with a potential upside target around $1.20, which places the AUD down at around 80 cents. That is currently 17 cents away from where it currently sits. Our analysis feeds off the sentiment of global Forex traders and investors and the chart indicates what they are betting on.
You can get regular updates from us, simply by purchasing our EBook, Simple Tactics, Profitable Trading via http://www.stpt.com.au/
