Copper future march delivery closed down 2.9 percent yesterday in New York at 3.2415 a lb. Today the market is weak also, moving down again consistently. The global economic slowdown is reducing demand of the industrial metal and particularly from US, which uses 15 percent of world output.
We believe in a further downwards movement, first support at 3.1050 but could possibly move down to close the small gap left open on 21st december (green and red lines) at 3.0000.
White candle and average volumes have characterized today's session of the Dax future that has traded for the last 9 weeks within the range 7.030 - 6.690. Our advice is to wait till it moves out of this restricted channel. Technically talking we should open short positions if the future hits and breaks the support at 6.690. On the other hand, above the resistance at 7.030, the breakout should push the price up.
Short: < 6.690 and T1 at 6.400.
Long: > 7.030 and T1 at 7.430.
In the interest rate cut game played by Bernanke and Trichet (still to play), the bund future has shown its volatile character. The blu trendline has been forced twice but bund has always bounced back below it. We think that it could be an important resistance because Trichet does not reckon a rate cut would be a good solution for EU well being. Our first support is 116.04 while next resistance is today's high at 117,55. High volatility is still expected.
GBP future March delivery touched 1.9634 low on friday's session, just few ticks above the low level touched on 6th June and on 17th August.
We believe that if it forces this support it will move towards the lower blu trendline where it could find a very solid support.
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