Is Gold Getting Ready For Its Next Move?
Thursday, March 12, 2009
By dodjit.com
The U.S stock markets continued forward yesterday, following Tuesday’s massive rally. While a slight correction was expected by most traders following the 7% gains, the market continued on positive momentum closing the session higher. The S&P500 closed the session higher by 0.24% while the Dow finished 0.86% higher.
Even though optimists are beginning to talk about a bear market rally, one that could retrace a nice percentage of recent losses, one must take into consideration that economic data continues to show a different picture. In addition before anyone jumps to any conclusions regarding a change of trend, the major indices are yet to break major resistance levels.
The financial sector continued to lead the markets yesterday following J.P Morgan’s announcement. The large bank also announced that they are also seeing profits for the first two months of the year. J.P Morgan closed the session higher by 4.62%, while Citigroup continued higher, closing the session with gains of 6.21%.
Economic data continued to take its toll on the various economies. New Zealand reduced its central bank rate by half a basis point, while Japan showed further contraction releasing a GDP result of -3.20%. In addition the unemployment rate jumped in Australia to 5.2% increasing the chanced that the central bank will have to reduce its rate at its next meeting.
The USD/JPY is moving again
On the Forex Market, the USD/JPY yet again caught trader’s eyes early morning breaking recent support. Over the last couple of days the USD/JPY has failed to break the charts weekly 50% Fibonnacci level. While there was no major reason behind the Dollar drop, from a technical point of view the chart could correct to the 31.8% level, which is in line with previous support. One should watch for a follow though throughout the intraday session to avoid a false break.
The Dollar index continues to hold above trend line support following yesterday’s drop. A break of current levels could lead to major movement across the board, including breakouts on recently mentioned pairs, such as the AUD/USD.
Crude hits resistance and drops
Crude oil continued to show dramatic moves dropping by over 6.36%. The major commodity failed to break resistance of $50 dropping to close the session at $43.99 per barrel. Crude inventories in the U.S showed a sharp increase of 0.70M, a number which immediately affected the intraday price movement, sending crude lower.
Following our video briefing, Gold continues to linger around critical levels. After failing to climb higher, this metal retraced back to trend line support. News events could spark a major movement to both sides, and should be observed carefully.
Whats coming up?
Looking forward, ECB president Trichet will be holding his monthly statement later on today. Most investors will try to figure out what is going to be the ECB’s next move regarding monetary policy. In addition the Swiss National Bank is scheduled to release its interest rate decision. Later on during the session the U.S will be releasing its retail sales result. The result is expected to show a further slow in the sector, but a slight improvement compared to last month’s -1% result.
market pivot points
Thursday, March 12, 2009
By dodjit.com
The U.S stock markets continued forward yesterday, following Tuesday’s massive rally. While a slight correction was expected by most traders following the 7% gains, the market continued on positive momentum closing the session higher. The S&P500 closed the session higher by 0.24% while the Dow finished 0.86% higher.
Even though optimists are beginning to talk about a bear market rally, one that could retrace a nice percentage of recent losses, one must take into consideration that economic data continues to show a different picture. In addition before anyone jumps to any conclusions regarding a change of trend, the major indices are yet to break major resistance levels.
The financial sector continued to lead the markets yesterday following J.P Morgan’s announcement. The large bank also announced that they are also seeing profits for the first two months of the year. J.P Morgan closed the session higher by 4.62%, while Citigroup continued higher, closing the session with gains of 6.21%.
Economic data continued to take its toll on the various economies. New Zealand reduced its central bank rate by half a basis point, while Japan showed further contraction releasing a GDP result of -3.20%. In addition the unemployment rate jumped in Australia to 5.2% increasing the chanced that the central bank will have to reduce its rate at its next meeting.
The USD/JPY is moving again
On the Forex Market, the USD/JPY yet again caught trader’s eyes early morning breaking recent support. Over the last couple of days the USD/JPY has failed to break the charts weekly 50% Fibonnacci level. While there was no major reason behind the Dollar drop, from a technical point of view the chart could correct to the 31.8% level, which is in line with previous support. One should watch for a follow though throughout the intraday session to avoid a false break.
The Dollar index continues to hold above trend line support following yesterday’s drop. A break of current levels could lead to major movement across the board, including breakouts on recently mentioned pairs, such as the AUD/USD.
Crude hits resistance and drops
Crude oil continued to show dramatic moves dropping by over 6.36%. The major commodity failed to break resistance of $50 dropping to close the session at $43.99 per barrel. Crude inventories in the U.S showed a sharp increase of 0.70M, a number which immediately affected the intraday price movement, sending crude lower.
Following our video briefing, Gold continues to linger around critical levels. After failing to climb higher, this metal retraced back to trend line support. News events could spark a major movement to both sides, and should be observed carefully.
Whats coming up?
Looking forward, ECB president Trichet will be holding his monthly statement later on today. Most investors will try to figure out what is going to be the ECB’s next move regarding monetary policy. In addition the Swiss National Bank is scheduled to release its interest rate decision. Later on during the session the U.S will be releasing its retail sales result. The result is expected to show a further slow in the sector, but a slight improvement compared to last month’s -1% result.
market pivot points
