Comments for Thursday, January 28, 2010
Looking Ahead to Today by Reflecting Back at Wednesday’s Price Action
Higher closes yesterday for the British Pound and dollar index while lower for the Euro Fx, Swiss Franc, Canadian and Aussie dollar along with the Japanese yen. The euro and franc made new recent lows and closes giving me a SELL SIGNAL in the franc. The yen made a new recent higher before settling lower again in reversal type action with good resistance above 11200. The Canadian dollar was unable to hold 9400 which means it should continue lower overall but hasn’t given me a sell signal at this time. Also we could see a rally from here based on how it acted in this area over the last few months. The pound settled higher and could be forming a larger bottom as it’s starting to turn back up in the short-term. The Aussie dollar closed lower with no changes technically while trading, basically, sideways since late October. The dollar index had a strong close higher and is very close to giving me a buy signal.
Higher settlements Wednesday for crude and heating oil along with the rbob while lower for natural gas. The crude, heat and rbob made new recent lows and closes unable to hold their respective critical support areas confirming my sell signals. All three have been selling off since their reversal type action on January 11th. Gas also broke through a critical area confirming my previous sell signal with a second one.
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Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at email@example.com.
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