Good Morning Traders!
As is typical, indexes had a narrow range day in front of ECB Thursday morning. Many markets have breakout formations: AD CD $index BP and gold have three bar triangle breakout patterns. In the past, the markets have reacted in one direction and then trended in the opposite direction, OR< simply had a straight-line breakout…..But ALL markets can move in either direction.
The chart of the DAX shows key levels – it has not yet made a full retest up, so there are still overhead pivots, but it can also flush below the 5 SMA since it has now had 7 consecutive higher lows. The DOW fell one penny short of its all time high and so that still remains a viable upside pivot. Gold can move in either direction – Moore Research has a seasonal long window starting April 4. I have not seen this last COT report to see if Funds reduced their overly long commitments.
The EC is right around its daily EMA – I posted a chart showing it mid way between key pivots as well. The bunds had a bull trap at the top and have been pushing lower . They are short term oversold but can eventually trade all the way back to the lower end of the range (marked off).
Corn dropped back into its trading range and thus has a mini bull trap. It has a three bar triangle pattern too. Beans were able to close back above and close with a pinball Buy.
Cows did not do much to the upside on Wednesday but are still on a Buy. Hogs are fishing below a previous swing low – Power Buy setup may form.
Keep your powder dry! Linda