Friday, June 10, 2011

Natural Gas (NG) Holds trendline support 6/10

Natural Gas daily chart to our left here, and after we broke the trend line in green shown last week, it looks like yesterday's mini flash crash punctured through it and tested the 50% retrace of its most recent up move shown in purple. Holding that level and then closing pretty much on the green trend line, we now head up and look to easily close well above the trendline. I think we have the makings of a breakout of this channel for natural gas and I could see this continuing up for a while.

Dollar Index (DX) Restarting Uptrend? 6/10

The dollar index 4 hour chart shown here, has surged today quite a bit, causing just about every other market to head south. We can see in the chart I have retraced the recent up move from its lows at 72.8 (in purple), and its recent down move (in yellow). There was a major resistance test on the way up right at 75.12 where we see confluence of two separate levels. Now that we've broken that I would expect that to provide significant support for any test back downwards. I think we might of just had a larger retrace than normal and could be heading to new relative highs past 76.6 in the upcoming weeks.


A lot of the markets are in one way moves it looks like today, and being as its Friday and I'm not sure what exactly to analyze today, we ask you to let us know if there is anything you want us to take a look at and give our opinions on. If so let us know in the comments.

Silver Finally Exhausted? (I Hope So!!) 7:30 AM CST 6/10

(Chart 1 - Daily silver zoom)
(Chart 2 - Daily silver)
(Chart 3 - 60 min silver zoom)
(Chart 4 - 60 min silver)

I've been saying it all month.... Precious metals look toppy.

37.5 was ultimate resistance.
We stop ran it, then came back through it pretty well

Current support is at 36.75 (low of 60 min bullish channel and 3rd potential touch of it as well)
If/when we break that, 36 will attract buying.

I don't see that holding, and see us getting to at least the midpoint of the bearish magenta daily trend channel, near 34.5.

Ultimately, I see us getting to 33 in the next couple weeks