SPDR Gold ETF (GLD): Short Opportunity!

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Gold has shown weakness recently and GLD chart has shown a reversal pattern to indicate the pull back.

  • GLD has broken 20D and 50D MA with gap down.
  • GLD is unable to break the 50D MA resistance although the recent rebound. This 50D MA support now becomes resistance.
  • Bearish Engulfing candlestick pattern formed at the 50D MA resistance., after a short rebound.
  • Base on the long term GLD uptrend chart pattern, everytime GLD break the 50D MA support, GLD will head towards the uptrend support (also the 23.6% support line of Fibonacci Fan) and the 200D MA.
  • MACD Bearish Convergence.
  • GLD starts to stick on lower band of Bollinger Band.

Current chart pattern represent a good opportunity to short the SPDR GLD shares and also opportunity to buy on dip when pull back to 200D MA support (provided the Gold rebound from the support).

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Straits Times Index (STI): A Big Correction Ahead?

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Straits Times Index (STI) has been trading within a Symmetrical Triangle for 3 months but broken down with a long bearish candle last trading day. This breakdown of a Symmetrical Triangle may send STI index down to 3,000 level which is also a psychological support level.

Also take note that the current STI is trading below all 4 Moving Averages (20D, 50D, 100D and 200D), 20D MA is crossing down 200D MA, MACD in Bearish Convergence region…. other technical indicators are also showing the bearish momentum of STI index.

I am bearish on STI in the coming weeks. Any BULL out there to share your view?


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JP Morgan Chase (JPM) – Double Tops!!

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JPM is forming at Double Tops and currently just sitting on the neckline at $37.70. Base on the chart, there is a very high chance for a breakout of this Double Tops chart pattern due to the following observation:

  • JPM is unable to break the 20D MA resistance (shaded in red) and bounces down.
  • 50D MA is crossing down 200D MA.
  • Stock price is hooking on the lower Bollinger Band
  • MACD is going to show Bearish Convergence
  • Parabolic SAR is going to reverse.
  • RSI and Stochastic are reversing and turning down.

Plus fundemantally, all the negative news in Euro zone debt crisis and no clear signs that the crisis can be resolved in near term. Besides the PIIGS, now Hungary is coming into picture! I feel this crisis is even worse than than US financial crisis because Euro zone cannot print money to save those countries.

The breakout target price is $27.70 which is close to the 61.8% Fibonacci Retracement Level. I find no reason not to short JPM by buying a PUT option base on the current analysis. In addition, the implied volatility (IV) is low that make the option not so expensive. Any contrarion out that have a bullish view?

Continue ReadingJP Morgan Chase (JPM) – Double Tops!!