CFD Trading Report - Technical Analysis Gold

CFD Gold 1 Hour Chart Elliott Wave
Perfect follow through on gold, after the prices retraced for 38.2% in wave ii as highlighted on Friday, before market collapsed sharply through wave i supports. A fall during Asian hours was very sharply and it seems we are trading impulsively, primary in wave ii which may reach 1670 area in the coming sessions.

SPI CFD Day Trading Strategies

Code: SPI CFD / ASX200 XJO
Date: 20 December
Chart: 4 hour Chart
Two basic points, the 4000 as MediumLevel Support and secondly the Trendline support.
EarlyBird Report Comments:
SPI CFD 4080
Technical Analysis
TradingLevels: If 4100 becomes the resistance then the price would work lower to 4000 where it would likely bounce up in three waves
Elliott Wave: The pattern on 4000 over the Oct Nov period is open for interpretation, however it is forming a triangle pattern and that means when its completed a move down will occur. So what does completed look like, well a triangle in Elliott theory is five swings abcde and so far we have the abcd the current low can be the wave d, so eventually we would see a wave e up, how far would the wave e go, the 4200 is the pivot within Minor Group1 so I could see it finding support on 4200 based off the current low the 61.8% would be the 4200.
Day Trading Strategies: Move stops down to last high above 4100 after the second retest of 4100. New trades need to work SG2 {4080|4072|4065} then the Midpoint, there is a daily trend line cutting through the 4030 – 4050 are double check this. Essentially one the market opens and settle being on the right side of 4072 is the starting line.

The Day Ahead – Technical Analysis Report 2 Feb

Dow Jones 12,756 +1.00%
Base Metals Positive
US Gold CFD: 1746
Oil WTI: 98.41
Copper CFD: 383
US Dollar: 78.90
EURUSD 1.3080
AUDUSD 1.0708
Dow Jones CFD 12,760
S&P500 CFD: 1327
FTSE 100 CFD: 5792
DAX CFD: 6623
SPI CFD 4286

News
U.S. stocks advanced as solid manufacturing reports around the world bolstered investor confidence.
 
Technical Analysis

US Gold CFD: 1746
Technical Analysis:
TradingLevels: The Midpoint 1750 is the resistance, but now appears will become support in due course, followed by  Subgroup1 (SG1) 1710|1720|1730 with the 1772 as the main resistance and of course the (mTL8) 1800 as the target to take profits, then wait for the correction at this MinorLevel then get back in to trade higher
Elliott Wave: The internal wave structure up in creeping but it’s in tact as an impulse wave, it should therefor climb higher, gaining support above 1750 and moving to 1772.
Australian Gold stocks should also continue higher, I was a little concerned with NCM but that should now extend higher. The other stock that we talked about was the large triangle pattern on TRY above the MediumLevel 4.00 which is plodding along nicely as a trend trade with 5.00 as the first target

Silver: and copper have much the same wave pattern. The 34.00 (Fibonacci number) is the resistance that you need as support

Oil WTI: 98.41
Technical Analysis:
TradingLevels: Same - Long with a break above 101 and short under 98.
Elliott Wave: Oil did not follow stock up and is still firmly locked under the 100 and the 99.00 has also developed the first failed retest which is what we were looking for yesterday, the next step if this market is heading lower is the 98.00 / 97.72 as the resistance to add to shorts

Base Metals

US Spot Prices (in l/b)
US Copper:           Last: 3.84+
US Nickel:             Last: 9.49+
US Zinc:                Last: 0.96+
US Aluminium       Last: 1.00+

Copper CFD: 383
Technical Analysis:
Generally speaking, as long as copper stays above the 372 we have a bullish corrective Elliott wave four and we shouldn’t expect  too much upside here for a while, this was mentioned when the price first arrived at SG2 this is all normal when markets are working around these price levels and we can see this in other markets like US BHP at 80 which is a MajorLevel, at least while they are vibrating at their levels they are stabilising other markets in general, once they have completed their corrective pattern they will push higher, but the bottom line is to know the price levels to exit, either for a profit or a loss and that’s 365 on the downside and 4.00 on the upside

Forex

All major European shares trade higher today, up more than 1%, in-line with the S&P futures which are showing some sharp gains now back above yesterday’s 1313 high. US dollar is very weak, down almost against all majors, only unchanged against Gbp at the moment but weakest against the Aud; down 0.4%.

US Dollar: 78.90
Technical Analysis:
Dollar making new lows, but the Euro and Indices haven’t just yet so there is a lagging resistance, the dollar has good historical resistance points every 50 points, 79, 78.50 and 78 are good support and resistance price to work from. The SP500 is showing an impulse wave pattern up from 1300, it does need to make a new high above the old high1333 to confirm the impulse wave and if it does which is another three points as today’s high so far is 1330, then by looking at the impulse structure we can look above 1350 to 1372+  and of course this would take the Euro with the SP and the dollar would be lower into the 78 zone, but first things first and the 78,50 is the next level of support once the price retests 79 and develops 79 as the resistance


EURUSD 1.3080
TradingLevels: The 132 is an old high so we are seeing profit taking, plus the trend up from 130 to 132 requires rebalancing, the main support is the 13150 but as always just allow the reaction correction from 132 to unfold out until it gets to a point you can recognise and work with, I find it easier not to get involved in the first swing in a correction, but to observe it and work out what it is, such as three waves or five waves, this narrows down the possibilities of the next larger pattern. If the 13150 cannot hold then the 13130/20 are the next supports
Elliott Wave: The pattern will also be in line with the SP500 and if the DP can make a new high above 1333 then its bullish and so will be the Euro and then you can look for support on the 132 to trade long or if you can work out the corrective pattern under the 132 then you will be able to enter lower
Trading Strategies: The probability is up, the question is the size or the corrective pattern under 132, the supports are 13150 then 13120 either one of these is likely, I just sure, so its best to allow the corrective pattern to unfold to a recognisable pattern and a supporting retested price level to work off, as mentioned watch the SP500 and support on 132 is the safest trade. The other point worth noting is that the AUD made new highs and this market is a great leader of other markets these days 

AUDUSD 1.0708
TradingLevels: The price will now work with 107 and when working with large number we also take into consideration the smaller numbers on both sides of the larger number and in this case you will find the group1 above 10710|10720|10730 doing their first job in restraining the price to 107 and the first line of defence the supports group2 below 10680|10672|10665. We should see the price create a corrective pattern across the 107 but with group1 and 2 helping out in holding the pattern. After the corrective then look to trade long
Elliott Wave: The impulse wave up continues to trend in line with base metals and a safe haven
Trading Strategies: Wait for the corrective pattern to unfold in three swings across 107 above and below, then look for support on 107 and 10730 of course you can enter anywhere in the corrective process but you need to know what your looking at, if you don’t know then don’t enter and wait for the largest number to become support via retesting that price then making a new high.
11:30am  AUD        Building Approvals m/m    2.3% 8.4%  
11:30am  AUD        Trade Balance    1.23B 1.38B  

Indices

Patterns are positive to the upside and move is expected, the Dax and AUD are leaders in these patterns by making new highs, the Dow and ASX haven’t made new highs but should in time.

Dow Jones CFD 12,760
Technical Analysis
TradingLevels: Resistance one is 12,800, second is SG2 12,765|12,772|12,780 with 12,772 being the pivot a trade would need as support for longs in that zone.
Elliott Wave: The pattern appears positive to the upside as a few other markets have made new highs, but technically as it stand the move up from the 12,530 is in three waves i.e. corrective abc rally only when it makes a new high above the 12,840 can we then expect a follow through towards 13,000 (TL13)
Trading Strategies:  Day Trading, as you can see the SG2 12,772 zone is holding the price, the support is back at 12,720, the 12,750 is also a support but it doesn’t have the volume support only the psychological support. Any way the price is going to correct to some degree from the 12,772, so just allow it to and when it finds support the look to move in long again. Also the 12,800 is likely to be part of a larger corrective pattern, but the price should stay above the 12,700 if not then this would break the impulse pattern that’s trending up

S&P500 CFD: 1327
TradingLevels: Expect a corrective pattern across the top of SG1 1330 the TradingLevel Classic pattern across this level is highly likely, once this is completed and the 1330 is support trade long to the Midpoint 1350 exit, wait for the corrective pattern and retender, shorter term traders would work the 1340 taking profits into the 1338 (Microlevels)
 Elliott Wave: Impulse wave up is underway
Trading Strategies: wait for the Classic Tradinglevels pattern to unfold at 1330 which is essentially the abc Elliott pattern, once 1330 is support scale in long using Micro Group1 1331|1332|1333 if the 1333 the top of group1 finds support then you know your free to go.

FTSE 100 CFD: 5792
TradingLevels: Resistance (mTL8) 5800 Support SG2 5780|5772|5765 this hasn’t been retest as support yet but its likely during the corrective process of the price working through the MinorLevel 5800
Elliott Wave: The Dax was and is the catalyst for the move up above the 6500 (ML65) the Dax making a new highs helps with the wave count for the FSTE and we assume that the FSTE will make a new high here based on the Dax’s new high, that said the move yup in the FSTE is in three wave i.e. corrective abc and therefore it can fail from here like the Dow/ SP500, this is probably not the case but I have to mentioned it. We can expect a corrective pattern at the 5800 with the SG2 as the support
Trading Strategies: The 5800 will cause swings, you have to be careful. The 38.2% retracement level is around the 5750

DAX CFD: 6623
Technical Analysis: expect a corrective pattern across the 6600 the resistance above the current high would be 6650 and the support below the 6600 is 6572 SG2 after a correction higher price are expected in line with the impulse wave up
 

SPI CFD 4286
Technical Analysis
TradingLevels: Like the US Indices no new highs here, however the pattern under 4300 is corrective and a break higher should occur, yes the cash market will lift the price higher, but remember the weekly cycle Thursday can gap higher and then fizzle out and trade lower, so be very careful of getting trapped buying the open
Elliott Wave:  New highs above 4300 over the next three days
Day Trading: A Move above 4300 then a corrective pattern back down into 4300, Friday and Monday should see the higher prices, so you need to survive any pullback today
11:30am  AUD        Building Approvals m/m    2.3% 8.4%  
11:30am  AUD        Trade Balance    1.23B 1.38B  

Summary

US Indices We are seeing an impulse wave up in all indices, the Dow and SP etc. haven’t made new highs but should based off the Dax and AUD  as leading indicators, new highs for the DJ/SP may not occur tonight in the US session but on Friday and Monday, the have employment figures in the next session, the ADP Non-Farm Employment last night were slightly positive so this is the lead for employment figures tonight and the Non-Farm Employment figures on Friday keeping the Job rate at 8.5 i.e. steady. The Dow should eventually find the 12,800 as support and push to 13,000.

Europe The Dax has been the catalyst and leader in moving higher, we can expect US and European markets to rebalance tonight a little before moving higher on Friday and Monday

China Edges higher, the shanghai 2300 top of Minor Group1 is what we are looking at for maintaining the trend higher.
Australia The move down yesterday in the ASX200 will see a rebound today, the element to look for in the move up is the volume and compare that amount of volume to the move down yesterday. The levels it is the same story we need the 4300 as support for the run to 4500 target.

The Weekly bullish cycle for Thursday, is seeing the market open higher, then trade lower during the day on lower volume and then seeing the buying volume move back in possibly on Thursday but more so on the Friday morning and looking for the strong Friday close and the follow through on the Monday

Trading Quote
The ability to change one’s mind is probably a key characteristic of successful traders. Dogmatic and rigid personalities rarely succeed in markets. The markets are a dynamic process and sustained trading success requires the ability to modify and even change strategies as markets evolve. Successful traders have the ability to adapt to the changing dynamics of the market and in the process maintain their consistency of performance. - GILL BLAKE

Today's Financial Events
Time     Currency   Detail     Forecast    Previous

Thursday, February 2, 2012

8:45am  NZD        Employment Change q/q     0.2%  
8:45am  NZD        Unemployment Rate     6.6%  
10:50am  JPY        Monetary Base y/y    14.6% 13.5%  
11:00am  NZD        ANZ Commodity Prices m/m     -0.8%  
11:30am  AUD        Building Approvals m/m    2.3% 8.4%  
11:30am  AUD        Trade Balance    1.23B 1.38B  
6:00pm  CHF        Trade Balance    2.85B 2.95B  
8:30pm  GBP        Construction PMI    53.0 53.2  
9:00pm  EUR        PPI m/m    -0.1% 0.2%   
11:30pm  USD        Challenger Job Cuts y/y     30.6%  
12:30am  USD        Unemployment Claims    371K 377K  
12:30am  USD        Prelim Nonfarm Productivity q/q    1.1% 2.3%  
12:30am  USD        Prelim Unit Labor Costs q/q    0.9% -2.5%  
2:00am  USD        Fed Chairman Bernanke Testifies      
2:30am  USD        Natural Gas Storage     -192B

Australian Corporate Calendar
Ceramic Fuel Cells Ltd         Trading statement

NOTES:
1. Check the ASX Dividend & Reporting section in the Member area before trading.
2. Prices may change as this Technical Analysis report is written from 3.30 – 6.30AM
3. Always think things out for yourself, we are only here to bounce ideas around.
Day Trading   Technical Analysis  Elliott Wave  Trading Strategies Trading Education

Good Morning & Good Luck!

Trading Education

Aud/Usd 1 Hour Chart
Saturday, 10 March 2012 at 12:40:00AM AEST

Australian dollar lost some ground after the NFP release and now came down to support line connected from 1.0508. We still favor a breakout higher, which will confirm selling for wave 5 headed then towards 1.0460.