Intermediate uptrend for natural gas approaching major resistance
Natural Gas Weekly Chart
Peyto Exploration & Development is a good proxy for the movement in the price of natural gas. View the chart for this junior oil company which is positively correlated with the price of natural gas. A big natural gas player, Encana, barely moved in response to the upward movement in natural gas. View the chart for Encana: not a pretty picture.
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High probability copper will test major support at $3.00. It is trading below the 50 day and 200 day moving averages. The 50 day has crossed the 200 day moving average. There was a tall dark shaven head and bottom ( very close) candlestick on the daily chart today. The RSI is at an oversold level but it can stay oversold for long periods and this is no reason to buy against the intermediate and near-term downtrend.
I have posted a number of charts on Dr. Copper highlighting the tepid prognosis for the world economy. One of the charts showed the positive correlation between the price of copper and the TSX Index.
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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.
Intermediate trend is up for the S&P 500 until proven otherwise
S&P 500 Index Daily 1-Year Chart
The chart pattern today (Monday, April 15) indicates caution but the intermediate trend is still up until there is a confirmed break below the intermediate trendline. This is near the support zone of 1530 to 1540.
There are three trends to consider for any index or stock: up, down or sideways. And there are three time frames to consider for a trend: near-term trend, intermediate trend and major trend.
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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.
Reference the last chart analysis for the TSX Index showing the support zone. It held the support zone right around the 200 day simple moving average. Today, there was movement into the energy and materials stocks which is represented by the tall white candlestick. One day does not make an uptrend and there will be heavy resistance at 12,500.
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The trend, rsi and volume indicate the index has a chance at the all-time high of 1,565.15 reached on October 9, 2007. But the first test will be 1,500 which is a significant round number. On the reverse side, a break below support of 1,470 would be a strong indicator to liquidate long positions.
Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.
The resistance level of 12,200 identified on the last chart of the TSX Index is now the support level. The reversal of roles is an important concept in technical analysis.
Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.
Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.
The above charts provide a long-term perspective for gold. The first chart shows the pricing for SPDR Gold ETF (ticker:GLD) for the period 2005 to 2012 in the logarithmic scale. The second smaller chart extends the date range from 1974 to 2012 and shows the actual price of gold in U.S. dollars in the linear scale.
There are two generally accepted principles in technical analysis: (1) individual stocks and broad indexes move in trends, and (2) the trend will continue until there is evidence to the contrary. How is this relevant for gold? The long-term trend for gold is up and is currently trading in a major and intermediate lateral trading band. And the near-term trend is down. Given the assumption that the long-term uptrend will continue for gold, a breakout above resistance of 174 and 185 (ticker:GLD) would confirm the continuation of the long-term uptrend. On the contrary, a break below support of 150 (ticker:GLD) would raise a red flag for the continuation of the uptrend.
Significant dates in modern gold history:
August, 1971: Then-U.S. President Richard Nixon takes the U.S. dollar off the gold standard, which had been in place with minor modifications since the Bretton Woods Agreement of 1944 fixed the conversion rate for one Troy ounce of gold at $35 (U.S.).
March, 1973: Most major countries adopt floating-exchange-rate system.
January, 1980: Gold hits record high of $850 an ounce.
August, 1999: Gold falls to a low of $251.70.
November, 2004: SPDR Gold Shares ETF launched
November, 2005: Spot gold breaches $500 for the first time since December 1987.
May, 2006: Gold prices peak at $730 an ounce.
November, 2007: Spot gold hits a 28-year high of $845.40 an ounce.
March, 2008: Benchmark gold contract trades over $1,000 for the first time in U.S. futures market.
September, 2008: Spot gold rises by nearly $90 an ounce, a record one-day gain.
September, 2010: Gold prices reach $1,300 an ounce.
September, 2011: Gold prices hit a high of $1,895 USD/oz
Note: The above chart analysis is valid as of the publication date. To review current charts click on Home or perform a search. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.
