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8/3/2019 2011 12 28 Migbank Daily Technical Analysis Report
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MIG BANK / Forex Broker 14, rte des Gouttes d’Or CH-2008 Neuchâtel Switzerland
Tel +41 32 722 81 00 Fax +41 32 722 81 01 [email protected] www.migbank.com
Please note: None of the strategies below represent trading advice or trading recommendations of any kind. Please refer to our full disclaimer.
WINNER BEST SPECIALIST RESEARCH
MA
S-TERMMULTI-DAY
L-TERMMULTI-WEEK
STRATEGY/POSITION
ENTRYLEVEL
OBJECTIVES/COMMENTS STOP
EUR/USD Await fresh signal.
GBP/USD Await fresh signal.
USD/JPY Await new buy trade setup above 80.00.
USD/CHF Looking to sell.
USD/CAD Awaiting new buy trade setup.
AUD/USD Await fresh signal.
GBP/JPY Await fresh signal.
EUR/JPY Await new setup.
EUR/GBP Sell limit 3 0.8425 0.8325/0.8142/0.8050 0.8525
EUR/CHF Sell Stop 3 1.2130 1.2030/1.1526/1.1002 1.2230
GOLD SHORT 2 1705 1530/1300 (Entered 12/12/2011) 1705
SILVER SHORT 2 34.1300 26.0700/23.3400 (Entered 01/11/2011) 34.1300
DISCLAIMER &DISCLOSURESPlease read the disclaimer and thedisclosures which can be found atthe end of this report
DAILY TECHNICAL REPORT28 December, 2011
Ron William, CMT, MSTA
Bijoy Kar, CFA
Notes: Entries are in 3 units and objectives are at 3 separate levels where 1 unit will be exited. When the first objective (PT 1) has been hit the stop will be moved to the entry
point for a near risk-free trade. When the second objective (PT 2) has been hit the stop will be moved to PT 1 locking in more profit. All orders are valid until the next report is
published, or a trading strategy alert is sent between reports.
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DAILY TECHNICAL REPORT 28 December, 2011
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Support seen close to the 1.3000 level.
• EUR/USD is unwinding mildly from oversold conditions, driven by short-
covering as the market adjusts to the break beneath 1.3146.
• Our cycle analysis successfully signalled increased volatility within the
first two weeks of December across “risk” proxies, including the equity
and commodity markets.
• Watch for a sustained close beneath 1.3000 (psychological level) to
resume EUR/USD’s multi-month downtrend into 1.2870 (2011 major low).
• Near-term resistance can be found at 1.3215 and potentially even 1.3550
(02 Dec high). Any rebound into these levels is likely to be short-lived.
• Inversely, the USD Index has extended its recovery higher to new 11-
month highs, (a move worth over 10% from the summer 2010 lows).
• Speculative (net long) liquidity flows are strengthening once again and will
continue to help resume the USD’s major bull-run from its historic
oversold extremes (momentum, sentiment and liquidity).
Special Report: EUR/USD ˝A Fall From Grace˝ ? Decline Targets 1.3770/1.3410. VIDEO
MIG Bank Webinar: “Why the US dollar is likely to gain up to 30% in 6-12 months.”
US Dollar Interview on Bloomberg
S-T TREND L-T TREND STRATEGY
Await fresh signal.
EUR/USD
Ron William, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 454
EUR/USD
EUR/USD daily chart, Bloomberg Finance LP
USD Index daily chart, Bloomberg Finance LP
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DAILY TECHNICAL REPORT 28 December, 2011
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Short-term a re-test of 1.5770/80 possible.
• GBP/USD exhibits a short-term structure from 1.5409 that suggests a
return back to 1.5770/80. However, a pullback would be expected
should a return to these levels be achieved, as the rise from 1.5423 isseen as being corrective in nature. A sustained push over 1.5770/80
will negate this corrective scenario.
• Italian ten year yields have eased back from the 7.000% level but this is
seen as being a temporary respite, with an expectation that this yield will
return to the 7.000% region and then on to re-test the high at 7.483%.
This could lead to GBP/USD experiencing a degree of support given the
negative structure that we are also seeing in EUR/GBP.
• Failure to remain above 1.5423 will see an immediate target at 1.5272
and then potentially trend-line support near 1.5100.
S-T TREND L-T TREND STRATEGY
Range bound trade likely t o persist near-term.
GBP/USD
Bijoy Kar, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 424
GBP/USD hourly chart, Bloomberg Finance LP
GBP/USD daily chart, Bloomberg Finance LP
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DAILY TECHNICAL REPORT 28 December, 2011
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Weakening beneath 78.24 (DeMark™ Level).
• USD/JPY is still weak beneath 78.24 (DeMark™ Level), as pricecontinues to hold within a multi-day trading range (see hourly chartbelow).
• Confirmation beneath 77.25 (pivot level) would help trigger a third price
retracement back to pre-intervention levels and potentially even a new
post world war record low beneath 75.35.
• Sentiment in the option markets continues to suggest that USD/JPY
buying pressure remains overcrowded as everyone continues to try and
be the first to call the market bottom, within the end of this multi-year
contracting pattern.
• This may first inspire a temporary, but dramatic, price spike through
psychological levels at 75.00 and perhaps even sub-74.00. Such a move
would help flush out a number of downside barriers and stop-loss orders,
which would create healthy price vacuum for a potential major reversal.
• The medium / long-term view remains bullish, as USD/JPY verges toward
a major long-term 40-year cycle upside reversal. Expect key cycle
inflection points to trigger over the next few weeks, offering a sustained
move above our upside trigger level at 80.00/60, then 82.00 and 83.30.
Please select the link below to review our special coverage on USD/JPY.
Special Report: USDJPY Verging on a major 40 year cycle reversal VIDEO
Webinar: USD/JPY’s Long-Term Structural Change
Media Reports: CNBC / Squawk Box & Bloomberg
S-T TREND L-T TREND STRATEGY
Awaiting Renewed Buy Trade Setup above 80.00.
Ron William, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 426
USD/JPY
USD/JPY hourly chart, Bloomberg Finance LP
USD/JPY daily chart, Bloomberg Finance LP
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DAILY TECHNICAL REPORT 28 December, 2011
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Tight range bound trade persists.
• USD/CHF continues to trade largely sideways in the hourly timeframe.
Focus remains on movements in EUR/CHF over coming days and
particularly into next year. As EUR/CHF nears the 1.2000 level againthe probability of intervention by the SNB will be heightened. Thus the
near-term fate of USD/CHF may be determined by EUR/CHF.
• As detailed in other parts of this report, there has been a return to the
7.000% region and higher in Italian 10 year yields, although today we
are seeing a minor pullback, ahead of debt auctions today/tomorrow.
Fresh highs are still anticipated in this maturity, with scope then for a
minor pullback in yields, maintaining downside pressure on USD/CHF.
Next year is also likely to see a return to focusing on rollover funding
issues for the Italian economy.
• 10 year yields in Spain and Italy are currently trading at 5.084% and
6.767% versus 6.478% and 7.355%, before the US Dollar based swap
agreement. These yields were trading at 5.384% and 7.103%
respectively on 27 December.
S-T TREND L-T TREND STRATEGY
Looking to sell.
USD/CHF hourly chart, Bloomberg Finance LP
Bijoy Kar, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 424
USD/CHF
USD/CHF daily chart, Bloomberg Finance LP
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DAILY TECHNICAL REPORT 28 December, 2011
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Unwinding from intraday resistance at 1.0425.
• USD/CAD is unwinding sharply from intraday resistance at 1.0425, which
coincided with a short-term DeMark™ exhaustion signal.
• We prefer to wait for a strong directional confirmation higher before
initiating a buy trade setup.
• A sustained break under 1.0220 now suggests further downside into
1.0000.
• Meanwhile, the bulls need to push back above 1.0425 and 1.0524 (25
Nov swing high), in order to trigger a larger breakout from the rate’s multi-
month triangle pattern.
• In terms of the big picture, a directional confirmation above 1.0680 is still
needed to unlock the recovery into 1.0850 plus. This would extend the
upside breakout from the rate’s ending triangle pattern, which was part of
a major Elliott wave cycle.
• EUR/CAD has breached the base of an important multi-month distribution
pattern. A sustained break beneath 1.3393-79 (19th
Sept low/61.8% Fib),
now signals an important breakdown into 1.3140 and provides substantial
correlation pressure onto EUR/USD.
S-T TREND L-T TREND STRATEGY
Awaiting New Buy Trade Setup above 1.0425.
Ron William, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 454
USD/CAD
USD/CAD daily chart, Bloomberg Finance LP
USD/CAD hourly chart, Bloomberg Finance LP
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DAILY TECHNICAL REPORT 28 December, 2011
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Strong unwinding from oversold conditions.
• AUD/USD is unwinding strongly from oversold conditions, which also
coincided with an intraday DeMark™ buy signal.
• Although this recovery is sharp, it is likely to be short-lived as signaled by
the DeMark™ signal. The bears must sustain below 1.0000 to further
compound downside pressure on the rate’s multi-year uptrend and push
back towards 0.9611.
• Elsewhere, the Aussie has weakened against the New Zealand dollar.
Near-term price activity has mean reverted back over the 200-day MA
and we watch for further setbacks over the multi-day/week horizon.
• The Aussie dollar is also pairing back its mild recovery against the
Japanese yen, while holding above the neck-line of its two-year
distribution pattern. Watch for further downside scope into support at
72.00 which would signal further unwinding of g lobal risk appetite.
S-T TREND L-T TREND STRATEGY
Await fresh signal.
AUD/USD
Ron William, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 454
AUD/USD daily chart, Bloomberg Finance LP
AUD/USD hourly chart, Bloomberg Finance LP
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DAILY TECHNICAL REPORT 28 December, 2011
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Daily bear flag in focus for now.
• GBP/JPY is potentially in the process of forming a bear flag in the daily
timeframe. As anticipated a degree of resistance has been seen close
to 123.00. A break under the 121.00 region will likely accelerate the
downside momentum.
• Although short-term weakness may be witnessed there is an
expectation that GBP/JPY will see strong support on the approach to
116.84, should this region be revisited.
• Longer-term it is anticipated that a much larger recovery will develop
with scope for a return to 163.09 and then potentially on to 192.65.
However, signs of basing are still not evident, with the bias still to the
downside in the near-term.
S-T TREND L-T TREND STRATEGY
Await fresh signal.
GBP/JPY
GBP/JPY daily chart, Bloomberg Finance LP
Bijoy Kar, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 424
GBP/JPY hourly chart, Bloomberg Finance LP
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DAILY TECHNICAL REPORT 28 December, 2011
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Short-term range trading persists.
• EUR/JPY has entered into a tight range bound trading zone in the
hourly timeframe, after finding interim support close to the 105.00 level
recently.
• We remain wary of the fact that the 1.3146 level has now been
breached in EUR/USD warning of a larger swing lower in EUR/USD.
This makes the possibility of a return to 100.76 more likely in EUR/JPY.
• However, the structure present since 100.76 is suggestive of a further
swing to re-test 111.60 over the medium-term. Thus, while trade is
maintained above 101.05, a further leg higher is favoured.
• A breakout of the tight hourly trading range is now sought, with a push
higher favoured in line with the medium-term structural arguement given
above.
• This clash between structure and event risk in the Euro-Zone keeps us
on the side lines for now.
• Sustained under 100.76 will warn of a much larger continuation to the
downside.
S-T TREND L-T TREND STRATEGY
Await fresh signal.
EUR/JPY hourly chart, Bloomberg Finance LP
Bijoy Kar, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 424
EUR/JPY daily chart, Bloomberg Finance LP
EUR/JPY
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DAILY TECHNICAL REPORT 28 December, 2011
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Lower high sought near 0.8425.
• EUR/GBP is maintaining the initial support already seen near 0.8300.
Scope is seen for a minor continuation of the short-term recovery
higher. However, hourly structure remains bearish with a lower high
sought versus 0.8613 for a f resh swing to re-test 0.8303.
• If a sustained break under 0.8303 can be realised then an extension
back to the 0.8068 – 0.8142 region would become viable. This view is
assisted by the recent push under 1.3146 in EUR/USD, which may act
to make EUR cross shorts easier to maintain.
• Rising yields in the core Euro-Zone sovereign bond markets is a
continued concern and one that may destabilise the FX markets going
forward. Within this environment Sterling may well be judged as a short-
term safe haven, further adding to the potential for downside pressure
ahead.
S-T TREND L-T TREND STRATEGY
Sell limit 3 at 0.8425, Objs: 0.8325/0.8142/0.8050, Stop: 0.8525
EUR/GBP hourly chart, Bloomberg Finance LP
EUR/GBP daily chart, Bloomberg Finance LP
EUR/GBP
Bijoy Kar, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 424
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DAILY TECHNICAL REPORT 28 December, 2011
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Short-term structure conducive to an extension lower.
• EUR/CHF is developing a structure in the hourly timeframe which is
currently suggestive of a sizeable extension lower. It is anticipated that
if a break under the recent low at 1.2170 can be achieved then
momentum follow through may lead to the targeting of clustered stops
under both 1.2123/30 and 1.2000.
• The Italian 10 year sovereign yield remains elevated, trading close to
7.000%. The new year will see further rollover funding, coupled with a
likely bout of negative growth in Italy, an unhealthy combination. Thus,
there is plenty of scope for the Swiss Franc to be sought once again as
a safe haven. The low yield available on Swiss Franc deposits is
unlikely to act as an impediment to it being demanded by investors.
S-T TREND L-T TREND
Sell stop 3 at 1.2130, Objs: 1.2030/1.1526/1.1002, Stop: 1.2230.
EUR/CHF daily and weekly charts, Bloomberg Finance LP
EUR/CHF
EUR/CHF hourly chart, Bloomberg Finance LP
Bijoy Kar, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 424
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DAILY TECHNICAL REPORT 28 December, 2011
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Gold weakens after testing its 200-day average as resisance.
• Gold has re-tested its 200-day average, which was recently broken for the
first time in 3 years. The move was triggered by a multi-month triangle
pattern breakout (see both daily and intraday charts).• Downside pressure remains heavy from inter-market weakness across
related risk proxies such as EUR/USD and equity markets. Moreover, there
is still heightened risk for a much larger decline if we confirm a weekly close
beneath $1600 and $1530 (swing low).
• A number of “bargain hunting” trend-followers will be watching this
benchmark “line in the sand” for repeat support or a potential big squeeze
lower into $1300 and perhaps even $1040-1000 (12-year channel–floor/see
top chart insert).
• Speculative (net long) flows also support this view having recently breached
a key downside level which may threaten over 2 years of sizeable long gold
positions. This will trigger a temporary, but dramatic setback that would
ultimately offer a unique buying opportunity into summer 2012.
Please select links for in-depth Gold coverage:
Special Report “Gold’s mountainous peak at risk…beneath $1600” VIDEO
Bloomberg Countdown CNBC Squawk Box MIG Bank Gold Webinar video(BLOOMBERG & CNBC REPORTS)
S-T TREND L-T TREND STRATEGY
SHORT 2: 1705, Objs: 1530, 1300, Stop: 1705
GOLD
Gold daily and weekly charts, Bloomberg Finance LP
Ron William, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 454
Gold hourly chart, Bloomberg Finance LP
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DAILY TECHNICAL REPORT 28 December, 2011
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Weak bounce retested $30.0000.
• Silver’s weak recovery from oversold conditions has tested key support
turned resistance at $30.0000. A sustained close below here now triggers
a test of the previous swing low at $26.0700.
• Macro price structure continues to focus on the downside risks, following
the major sell-off in September. Such a dramatic move traditionally
produces volatile trading ranges. This allows the market to have enough
time to recover and accumulate renewed buying interest.
• Expect a large trading range to hold between $37.0000-26.0700 over the
multi-week / month horizon, with downside macro risk into $21.5165
(61.8% Fib-1999 bull market) and $20.0000. This would still maintain
silver’s long-term uptrend and help offer a potential buying opportunity for
the eventual resumption higher.
• Continue to watch the gold-silver “mint” ratio (see top chart insert) which
has now accelerated higher by 70%, suggesting further risk aversion over
the next few weeks. This also helps explain recent divergences between
gold and silver.
S-T TREND L-T TREND STRATEGY
SHORT 2: 34.1300, Objs: 26.0700/23.3400, Stop: 34.1300
SILVER
Spot Silver hourly chart, Bloomberg Finance LP
Ron William, Technical Strategist, E-mail: [email protected], Phone: +41 32 7228 454
Spot Silver daily chart, Bloomberg Finance LP
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DAILY TECHNICAL REPORT 28 December, 2011
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Limitation of liability
MIG BANK disclaims, without limitation, all liability for any loss or damage of any kind,
including any direct, indirect or consequential damages.
Material Interests
MIG BANK and/or its board of directors, executive management and employees may have or
have had interests or positions on, relevant securities.
Copyright
All material produced is copyright to MIG BANK and may not be copied, e-mailed, faxed or
distributed without the express permission of MIG BANK.
Notes: Entries are in 3 units and objectives are at 3 separate levels where 1
unit will be exited. When the first objective (PT 1) has been hit the stop will be
moved to the entry point for a near risk-free trade. When the second objective
(PT 2) has been hit the stop will be moved to PT 1 locking in more profit. All
orders are valid until the next report is published, or a trading strategy alert is
sent between reports.
DISCLAIMER
No information published constitutes a solicitation or offer, or recommendation, or advice, to
buy or sell any investment instrument, to effect any transactions, or to conclude any legal act
of any kind whatsoever.
The information published and opinions expressed are provided by MIG BANK for personal
use and for informational purposes only and are subject to change without notice. MIG BANK
makes no representations (either expressed or implied) that the information and opinions
expressed are accurate, complete or up to date. In particular, nothing contained constitutes
financial, legal, tax or other advice, nor should any investment or any other decisions be
made solely based on the content. You should obtain advice from a qualified expert before
making any investment decision.
All opinion is based upon sources that MIG BANK believes to be reliable but they have no
guarantees that this is the case. Therefore, whilst every effort is made to ensure that the
content is accurate and complete, MIG BANK makes no such claim.
LEGALTERMS
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DAILY TECHNICAL REPORT 28 December, 2011
www.migbank.comRon WilliamTechnical [email protected]
14, rte des Gouttes d’OrCH-2008 NeuchâtelTel.+41 32 722 81 00
Bjioy KarTechnical [email protected]
CONTACT
Howard FriendChief Market [email protected]