Daily Form January 21, 2011


Inter-market Technical Analysis using algorithmic pattern detection


FRIDAY JANUARY 21, 2011       12:18:00 GMT




Spot silver reached an intraday high of $31.22 on January 3rd and has subsequently dropped by more than ten percent. As discussed on January 12th, which can be found here, it is now feasible to contemplate that traders will want to target tests at both the base of the cloud formation at $26.50, and also the lower dotted line close to $25.



Here again are comments from the January 5th newsletter

EWA, an exchange traded fund which tracks the MSCI Australian index, has a formation which might reveal itself in coming sessions as an intermediate term double top. It is also worth pointing out that EWA is very highly correlated with AUD/JPY and AUD/USD.





IWM gapped down in yesterday’s session and the volume is picking up on this corrective action.



AUD/USD is at a critical level where a break below the very thin cloud formation (which indicates that there is little support offered by this pattern) would also violate the upward trend line drawn.
Although I am not yet ready to pull the trigger weakness in today’s session could present an intermediate term trading stance on the short side with a target of 0.95 - also coincidental with the 200 day EMA.






TRADE OPPORTUNITIES/SETUPS FOR FRIDAY JANUARY 21, 2011


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





IYT  iShares Dow Jones Transportation Average  

IYT, an ETF which tracks the DJ Transportation sector, has sold off for two sessions on increased volume but has chart support at the level indicated by the dotted line.




IDX  Market Vectors Indonesia ETF  

Further to yesterday's comments on IDX, which tracks Indonesian equities, the weak technical pattern has now registered a decisive break below the 200 day EMA.