Today's interesting charts
Comment of the Day

November 12 2010

Commentary by David Fuller

Today's interesting charts

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David Fuller's view Gold - fails to sustain the break about the psychological $1400 and pulls back to test an MDL (Midpoint Danger Line as taught at The Chart Seminar) stop near $1350. The odds have increased that a medium-term reversion towards the mean has begun.

Platinum - fails to sustain the break above the psychological $1800 and pulls back to test the lower side of the previous range. Such is the size of the reaction that it has halved the overextension relative to the 200-day MA in a week and the odds have increased that it will steady in this region.

Silver - experienced some extraordinary volatility and closes towards the lower side of the week's range. Considering the almost 50% overextension relative to the 200-day MA at the peak, some further consolidation of recent gains appears likely. How gold performs will probably have a significant bearing on silver's performance. Palladium has a relatively similar recent performance.

Copper - testing the psychological $4 level and may pause in this area. However, a sustained move below the 200-day MA, currently near $3.40 would be required to question medium-term upside potential.

Cotton - more than 50% overextended relative to the 200-day MA. This reaction is the largest in the course of the 4-month uptrend. While the step sequence of ranges one above another remains intact, the risk of a reversion towards the mean has increased.

Sugar - large weekly key reversal caps the advance for at least the near term and a sustained move to new highs would now be required to question scope for a reversion towards the 200-day MA.

Nasdaq-100 - had become overextended relative to the 200-day MA and encounters at least short-term resistance in the region of the 2007 high. Some consolidation of recent gains appears likely and a sustained move above 2200 would be required to reassert the medium-term uptrend.

US Treasuries - continues to hold the break below 130 and a sustained move above that level would be required to question scope for additional downside.

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