Dow Jones down by 260 points – Global Indices and Gold Update

The last update on Global Indices was a few days back – Global Indices crucially poised

Since then all the global indices gave a sharp bounce back and are now currently seeing resistance around the upper trendline.

For Sensex it has been the upper end of the channel which is around 18000-18400 levels. Maintain my view of Shorts on Nifty on rise and avoiding leverage positions.

Charts below would show the state of global indices.

Dow Jones :

It seems to be a classic case of positive divergence and trap made around 9600. The upmove was quick but now seeing a correction from the trendline of recent tops. Testing of 9700-9800 could be seen.

Interesting to note how the lows and tops have been in a nice channel ! ( This is the best part of technical analysis works everywhere)

 

 

FTSE:

Another clean example of Parallel Channels. We have been seeing parallel channels consistently on Sensex for quite some time now.

 

 

Hang Seng:

As mentioned emerging markets looked better the Hang Seng index gave a sharp bounce in last 2 weeks but is now again testing the short term trendline.

 

 

Gold :

For a very long time i have given no view on Gold. The reason being i did not see a clean breakout move on the upside nor on the downside.

Attempts to cross 1250-1270 have not succeeded.

Expect 1170-1270 range to maintain for quite some time. So buy around 1165-1175 with a 10 dollar stop.

 

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