July 31, 2006
Spot gold is headed for another test of resistance at $680. A breakout above this level would signal a rally to test the May high of $725. Failure to penetrate resistance, however, would mean another test of $620..
The US Dollar Index is headed for a test of intermediate support at 84.75. Failure of this level would test primary support at 83.50. If the level holds, that would mean another test of resistance at 87.00.
The FTSE 100 is rallying after a higher low (mid-July) and a new high. Expect a test of resistance at the recent high of 6130. Twiggs Money Flow (21-day) is trending upwards, signaling accumulation.
The Nikkei 225 is headed for another test of resistance at 15500. The recent higher low is a bullish sign and a breakout above 15500 would signal reversal of the primary down-trend. However, if the index respects the 100-day exponential moving average from below, that would confirm the down-trend. Twiggs Money Flow (21-day) is completed a higher low: a positive sign.
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The All Ordinaries is consolidating between 4880 and 4980. A close above the rectangle would signal a test of 5100, while a close below would mean a test of primary support at 4800. Breakout above 5100 would signal the start of an up-trend.