We now find ourselves at important inflection across the board. As the spoos are currently swinging lower (earthquakes – get it – uuuhh – never mind) for a VWAP retest it’s time to look at support levels and where to expect acceleration in either direction:
The 1114 mark should be thought as the bull’s Maginot line – if the grizzly panzer brigade manages to push below it’s lights out and August is going to close below 1100. I currently do not sense that the bears have the resources to close the deal – maybe their supply lines in the Ardennes have been compromised. But sentiment is swinging wildly these days (with or without earthquakes – get it – uuuh, never mind) and instead of guessing the tape we rather stick with our charts – in the end price is the ultimate judge and it is never wrong.
The longs have 1190 in their sight and whether or not we get there depends on holding an important short term support line right here and now:
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As I’m typing this we are actually trading right on the line around 1141 – which also happens to be near VWAP on our Zero Lite. This line is extremely important and needs to be held. There is also currently an attempt to breach above 100-hour SMA and upper 25-hour BB. If conquered all of this should provide some very meaningful support – if it fails it would be bad medicine on a short and medium term basis.
Corn is in a very interesting spot right now as we just pushed above the daily buy net-line. I would probably venture a long position with a target near 790 – preferably at a retest of the 720 mark. Hell yeah – I’m cheap! 😉
A few currency setups you may find delectable:
AUD/JPY bumped its head against its hourly buy net-line at 80.47. Since I took this snapshot it bounced back a bit more and is currently at 80.37. I would take a long position if it swings back and manages a breach. Look for 80.17 as the first and 80.07 as the second support line.
USD/CAD is looking pretty bullish here on the daily. Taking it long on a breach but with a tight stop and a target at 1.00.
EUR/CHF made it above its daily net-lines buy as well as its 25-day SMA. I think we are good here for a push toward 1.19.
Similar situation on the EUR/JPY but ahead of the 25-day SMA breach. You can play this either way – short on a rejection or long on a breach above both buy net-lines around 111.
GETTING REPORTS OF A 6.0 EARTHQUAKE IN VIRGINIA – SUPPOSEDLY WAS FELT IN MANHATTAN – EXPECT VOLATILITY IN THE TAPE.
Just so happens that one of my genetically engineered graboids made it out of the evil compound the other day. I wonder… better make a call to Burt Gummer.
Keep it frosty and stick with your charts 😉
This entry was posted on Tuesday, August 23rd, 2011 at 2:13 pm. Both comments and pings are currently closed.