LunaticTrader

Investing with the Moon

Sell Euro

Posted by Danny on June 19, 2013

I am getting a sell signal for the Euro/US$ (click for larger image):

Euro

The 1.34 level also happened to be our upside target for the Euro.

***

Meanwhile, both the Nasdaq and the S&P 500 have closed above their daily reversal key levels, putting them in rally mode again.
Their daily support key levels are now at 1626 for the S&P, and at 3422 for the Nasdaq Composite.
If they fall back to close below these levels within days, then it would indicate a false breakout and probably a sharp swing to the downside. If the market can hold on to the gains, then look for a further rise into July.

***

Gold weakened significantly yesterday, in line with the sell signal we posted last week.
There is a chance that the $1350 level will hold for a triple bottom, and then things would start looking better going forward. If the support at 1350 gets broken, then gold can go to 1200 or even 1100 rather quickly.

Be well,
Danny

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6 Responses to “Sell Euro”

  1. Can I subscribe for your euro/usd service on daily/hourly basis pls ?

    Thanks.

    On Wed, Jun 19, 2013 at 2:13 PM, LunaticTrader

    • Danny said

      Hi. Thanks for your question. But I do not offer any subscription service. You can find my market calls here on the blog, and if my Earl indicators show interesting setups then I may also post the chart on my twitter account.

      Danny

  2. Alex said

    Hi Danny , how is coffee or sugar prices ? At support level now?? What will happen going forward ?

    Thank you

    Ag

    • Danny said

      Hi Alex. Both coffee and sugar have fallen to major support levels we mentioned in our new year forecasts ( http://fourpillarsfinance.wordpress.com/2013/01/29/forecasts-for-2013/ on pages 58 and 60).
      They will get rebound rallies sooner rather than later, as no market ever keeps going down in a straight line.

      Shorter term, sugar (SB) has given a buy signal in my Earl2 indicator last week and is now in an upswing.
      For coffee (KC) there is no buy signal yet, but would get one if coffee can close a few $ above its current levels, say $126.50.

      Commodities have a habit of grinding down much longer than one would expect, especially in the years following a major peak. Natural Gas from 2009-now is a typical example.
      A good bull move comes along every 10 years or so, and in between it is just choppy trading that seems to continue forever.
      So, that’s what I would look for once sugar and coffee have reached their post-peak bottoms.

      Danny

  3. Alex said

    Thank you Danny for your prompt reply. So sugar is still on uptrend ( 10 years or so ) ? What is the trend of coffee now ( 10 years or so ) ?

    thank you

    Alex

    • Danny said

      Hi Alex. I meant short term, which is based on the daily charts.
      I think trying to consider 10 years trends is both very difficult and also not really necessary to succeed. I do look at weekly charts from time to time, and that can give clues for up to a year but not much further than that. As we go out more than a year there are just too many things that can happen and alter whatever trend one has envisaged.
      So, for short term my indicators gave a buy signal for sugar last week, but for coffee not yet. How far will possible rally in sugar go? That can vary from a few weeks to many months. There is no way to know in advance. I just watch my indicators until they give indication that it is time to sell again.
      For sugar longs I would now keep a stop-loss just below $16.50 and if we see it rally above $18.00 then can become more optimistic longer term, because then the weekly chart would turn bullish as well.

      Danny

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