Daily FX | Dynamic Trader Blog

What next?

Good morning dynamic traders,

The Dow Jones has been in a decline since October 2007 and from March 2009 this market has bounced. More recently it tagged a resistance point and has again started to decline postMACD divergence.

If we examine the daily Dow a little closer we can see that a head and shoulders has formed at the VI. Right now we are close to the figure but if the decline continues short term then we might see further weakness of another 500 points. Beyond that support we have room for another 1000 points.

This will be a concerning time for the Dow and the S&P is not too disimilar so let's wait and see what develops here as of course this could be some form of profit taking. Why not study the chart and make up your own mind.

 

Chart courtesy of Advanced Get. Data supplied by eSignal.

Javid Shaik
Forex Analyst

Crude Oil Hits $80

Good evening dynamic traders. What a wild week it has been on the stock market. The Dow Jones is down 500 points at 7.40pm Friday evening and near the figure.

On my last dynamic trader update  I mentioned if crude oil breaches $88.93 then we could see further weakness and as Javid mentioned on FXCPS.com that in the coming months crude oil could continue down towards $80 or even $60. Since that forex post by Javid crude oil it has been 10 days and price has already hit $80.

Crude oil has a convergence and is at the figure plus a support zone. We might see a bounce before a continuation down. If you are also shorting crude oil then I believe it is time to manage the trade regardless of XTL. If the trend continues then $60 as Javid mentioned may come sooner rather than later. Daily chart of crude oil is below.

FXCPS forex analysis here.

Good dynamic trading...

Currency Analyst
Anne Chapman