Inter-market Technical Analysis using algorithmic pattern detection
THURSDAY JANUARY 7, 2010 06:54 ET
The daily chart for spot gold reveals an interesting Ichimoku pattern where the metal peeked above the green cloud formation in Tuesday’s session as anticipated, but slipped back into the cloud yesterday.
The next area of resistance arises at the Kijun Sen level at around $1150 per ounce (as indicated by the red arrow). If this level can be taken out then the previous highs of $1230 will be back in play.
The euro is struggling again in European trading as weaker than expected EZ sales were reported and the ongoing concerns about a sovereign debt crisis for Greece are unsettling some large asset allocators.
Notable on the 4 hour chart is the inability of the currency to break above the pink cloud formation during the whole period covered and its potential for a drop down below the current cloud formation.
My target from late last year of a retest of $1.4180 would be back on the table if we close today’s North American trading below the $1.43 level.
The Rogers Commodity Index (RCT) has broken away from a classical basing pattern which bears some resemblance to an inverted head and shoulders.
The Nasdaq 100 proxy QQQQ closed yesterday’s session with a red candlestick following the small range doji from the previous session on substantial volume. Reviewing the chart from many large tech stocks there is some suggestion that the new year momentum push appears to be stalling.
TRADE OPPORTUNITIES/SETUPS FOR THURSDAY JANUARY 7, 2010
The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions.
None of these setups should be seen as specifically opportune for the current trading session.
For a more comprehensive listing of price formations detected by our pattern recognition algorithms please visit TradeWithForm
TER Teradyne Inc.
Teradayne (TER) has posted consecutive shooting star patterns including yesterday's candlestick which might best be described as a gravestone doji.
PEY PowerShares HighYield Dividend Achievers
PEY, an ETF which tracks stocks with a consistent record of dividend increases, appears to be stalling near the previous highs from last October.
XSD SPDR Semiconductor ETF
XSD, an exchange traded fund which tracks the semiconductor sector, in harmony with the comments previously made about QQQQ is showing evidence of dissipating momentum.
JPM JPMorgan Chase and Co.
JP Morgan (JPM) achieved my target of $43.80 intraday in Tuesday's session (I was unable to prepare a commentary yesterday due to the extreme snow in the UK over the last few days) and closed yesterday's session at $43.92 which seems to be an area where near term resistance may check the recent momentum.