Technicals | Sep 19 2012
ncS&P 500 Near Possible Reversal Area While Crude Unwinds Momentarily
By Gary Kerdus
THE TAKEAWAY: The S&P 500 is trading near a potential reversal area of resistance while crude sold off heavily. The Dollar is firmly pressing against resistance and gold appears to be resting.
S&P 500 – Prices have rallied up to and stalled at what appears to be an ascending parallel trend channel line of resistance (red line) around the 1464.40 area. A push higher could find the next potential level of resistance around 1523.60 which was a high established on December 27, 2007. To the downside, the equity index may find support around the 1440.20 area (black line) which was once a past level of resistance and could now extend to become a potential floor of support. A push below the 1440.20 area may find additional possible support around 1426.40 where resistance formed (orange line) and turned into support on 9/10 – 9/11 which could further extend to become an additional sticking-point support area. The next level of possible support is marked around 1396.90 where the ascending parallel trend channel (grey line) projects.
CRUDE OIL – Price rallied up to potential resistance around the 101.05 area and was subsequently hammered down by the bears. The move lower pushed through projected support around 97.64 and stalled around 94.14 which was previously a floor of support marked by the lower red line. A beak lower may find support around 92.59 and 87.72, both of which were past resistance to act as potential future support areas and could serve as such again.
GOLD – Prices have traded aggressively bullish for quite some time and have recently move close to potential resistance around 1790.55/oz. Yesterday’s move lower may find a turning-point of support around 1741.84/oz where past resistance may serve as a future level of support (green line). Moreover, a push below 1741.84/oz may also find support around the 1716.15 area where past resistance acted as future support already and may do so again (orange line). The 1716.15 level in also inline to converge with the upward rising trendline marked in grey which could also become a floor to bounce from.
US DOLLAR – Prices fell to a floor of support around 9,738 (green line) where subsequently the greenback received bids up to potential resistance around the 9,816 area which was past support and may act as potential future ceiling of resistance. Moreover, the 9,816 area is also near the under-side of the descending trend channel line (grey line) which could further act as a turning point. A break higher may expose 9,893 where past support may act as a potential future ceiling of resistance. Alternatively, a strong move lower would have to push through 9,738 to find the next level of potential support around 9,672 which was a prior low where traders previously bid up the price.
The views expressed are not FNArena's (see our disclaimer).
For real time news and analysis, please visit http://www.dailyfx.com/real_time_news
DailyFX provides forex news on the economic reports and political events that influence the currency market. Learn currency trading with a free practice account and charts from FXCM.
Forex Capital Markets is headquartered at Financial Square 32 Old Slip, 10th Floor, New York, NY 10005 USA.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before you decide to trade the foreign exchange products offered by Forex Capital Markets, LLC, Forex Capital Markets Limited, inclusive of all EU branches, FXCM Asia Limited, or FXCM Australia Limited, any affiliates of aforementioned firms, or other firms under the FXCM group of companies [collectively “FXCM Group”] you should carefully consider your objectives, financial situation, needs and level of experience. If you decide to trade foreign exchange products offered by FXCM Australia Limited you must read and understand the Financial Services Guide and the Product Disclosure Statement. FXCM Group may provide general market information and commentary which is not intended to be investment advice and the content of this email must not be construed as personal advice. By trading, you could sustain a total loss of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading in foreign exchange products. Foreign exchange products are only suitable for those customers who fully understand the market risk. FXCM recommends you seek advice from a separate financial advisor.
FXCM Group assumes no liability for errors, inaccuracies or omissions in these materials and does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FXCM Group shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. This email is not a solicitation to buy or sell currency. All information contained in this e-mail is strictly confidential and is only intended for use by the recipient. All e-mail sent to or from this address will be received by the FXCM corporate e-mail system and is subject to archival and review by someone other than the recipient.”
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.