Daily Form April 14. 2010

Inter-market Technical Analysis using algorithmic pattern detection

WEDNESDAY APRIL 14, 2010       06:50 ET

The yield on the 10 year US Treasury may be ready to test the 3.75% level as indicated by two technical indicators - the 50 day EMA and the small cloud formation. However the mid month retreat patterns following each month’s NFP data may be close to having run its course.

After registering an island doji candlestick on Monday, the VIX moved up 4% in yesterday’s session and the MACD chart segment indicates a positive divergence which suggests that the momentum low on the downside readings in the near term may have already been seen.

As discussed yesterday price development on gold is evolving in harmony with the nested cup and handle patterns which have been in evidence in multiple time frames. The $1125 level is a key to watch on any pullback, and, for the longer term bulls on the metal, this would be an area to be looking to add to positions. An upward breakout would almost certainly move fast, but the short squeeze scramble would entice many opportunistic traders to play a significant upward breakout and expect a ride back to the mid $1200’s.

On an intraday basis the DAX index, is just about managing to prolong its steep ascent but there is some suggestion that some traders may be getting vertigo attacks prior to the US markets opening when the trusted algorithmic bias keeps propelling equities in their parabolic ascent.


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

STX  Seagate Technology  

A couple of weeks ago I commented that Seagate Technology (STX) had a bearish looking pattern from an Ichimoku and volume perspective, and the situation has deteriorated more recently and a short position would be worthy of consideration.

XSD  SPDR Semiconductor ETF  

Last week I suggested that XSD had been building a head of steam at its highs and that a breakout could be imminent. The upbeat earnings from Intel could propel this sector further upwards today - but on any significant breakout I would immediately take 50% out of the trade and insert a trailing stop on the balance.

Readers are advised that TradeWithForm is now offering a premium subscription service which will provide daily alerts to a variety of technical patterns including many based on Ichimoku analysis. You can find out more about the TWF algorithmic pattern analysis by visiting the following link .

MBT  Mobile TeleSystems OJSC (ADR)  

Also discussed here recently MBT still seems to be capable of registering a double top pattern but it would need to do so soon and a relatively tight stop loss is advised.