Michael_Macdonald-XATSUK

Michael_Macdonald-XATSUK

NB - all levels are assumed to be preceded by 0.0000 The steady fall from the 8854 current year high of 28 October has reached the 3700 Fibonacci retracement, where rising daily stochastics and the improving daily Tension Indicator are prompting a sharp bounce. There are early signs of a recovery developing, but a close above congestion around 5500 and the 5582...

Michael_Macdonald-XATSUK

The anticipated break below the 43577.07 Fibonacci retracement has been delayed, as unwinding oversold daily stochastics prompt a bounce, clearing congestion around 48000 to reach 52000. Daily studies remain mixed/negative, however, suggesting any further tests above 52000 should prove difficult to maintain. In fact, broader weekly charts are turning bearish,...

Michael_Macdonald-XATSUK

The fall from the 58354.14 weekly high of 21 February is extending, with prices now pressuring the 43577.07 Fibonacci retracement. Intraday studies and daily stochastics are oversold, suggesting short-term consolidation around here, but the proprietary Tension Indicator continues to track lower, suggesting further downside risks in the coming sessions. A close...

Michael_Macdonald-XATSUK

The test above the 11461.50 Fibonacci retracement has given way to consolidation. Daily stochastics are negative and the proprietary Tension Indicator is close to generating a bearish signal, suggesting increased downside risks in the coming sessions. A close below the 11200 pivot will add weight to sentiment and open up deeper reactions towards the 11003.37...

Michael_Macdonald-XATSUK

Extending gains towards strong resistance at the 11183.01 monthly high of 19 September. Daily momentum and the Tension Indicator are positive, highlighting an improvement in daily sentiment and scope for a break towards the 11461.50 retracement. However, weekly charts are mixed/negative, suggesting increased selling risk towards here. Support is at congestion...

Michael_Macdonald-XATSUK

Bear Signal at 25.61 intact. Breaking lower. Stop lowered to 25.50. Poised for further losses as studies and sentiment continue to weaken. Any break above 25.44 to remain limited.

Michael_Macdonald-XATSUK

The previous push above the 1.0825, (38.2%) Fibonacci retracement of the May-December fall and the 1.0870~ high of December 2016 has not been sustained, with EUR/USD falling back into range. Downside risks, however, are expected to remain limited, as momentum studies continue to strengthen and positive divergence unwinds. In the coming months, fresh gains are...

Michael_Macdonald-XATSUK

The anticipated pullback is unfolding, with the UK FTSE100 Index falling sharply to the 7093.57 low of February. A short-term bounce is possible, as oversold daily studies unwind. Weakening momentum studies and the bearish Tension Indicator (not shown) should limit scope. In the coming weeks, further downside tests are looked for, as investors adopt a cautious...

Michael_Macdonald-XATSUK

We have updated our monthly publication - US Sectors Relative to S&P500. It is an overview of the major US sectors, and covers, amongst others, Consumer Discretionary, Consumer Staples, Energy, Healthcare, Technology and Financials. Within several ratings changes, we have Downgraded Financials to Underweight. On an absolute basis, the US Financials ETF XLF is...

Michael_Macdonald-XATSUK

A more cautious tone is appearing across global equity markets. Further gains to prove increasingly difficult to maintain. China poised to break higher? Global equity markets remain in their dominant bull trends. Investor portfolios are overweight and investor sentiment is positive. However, warning signals are now appearing, suggesting further gains are...

Michael_Macdonald-XATSUK

GBP/USD is trading higher once again, in line with improving weekly and monthly studies. A close above the 1.2615 high of March will target critical resistance at the 1.2775 high of December. A later close above here will confirm a significant rally, as the October 2016 bull trend gains traction and investors adopt an outright bullish stance. Congestion around...

Michael_Macdonald-XATSUK

Under pressure. Focus on critical support at the 7093.57 low of February. A break beneath here would turn investor sentiment outright bearish, and confirm a more significant bear trend as the fall from the 7447 high of March gains traction.

Michael_Macdonald-XATSUK

AUD/USD is finding support above the 0.7455 (50%) Fibonacci retracement and 0.7450 congestion area. Rising short-term studies suggest potential for a push above congestion around 0.7600. However, mixed weekly readings are keeping investors cautious of further strength, with the 0.7680 high of 30 March to prove difficult to reach Consolidation is highlighted,...

Michael_Macdonald-XATSUK

There are further signs of bullish trend development in the VIX. Prices are now trading above congestion around 15.00 as momentum studies post positive divergence and continue to strengthen. The proprietary Tension Indicator (not shown) is also improving. In the coming months, expectations are for higher levels to attract, with focus turning to congestion around...

Michael_Macdonald-XATSUK

Gold prices have extended the rally from the USD1194.55 monthly low of 10 March. However, the push above the USD1263.95 high of February has met with a sharp reaction as overbought short-term studies unwind. Risk remains for a corrective pullback towards the USD1226.96 low of 21 March and the USD1217.50 break level, but improving weekly studies should limit any...

Michael_Macdonald-XATSUK

Short-term corrective gains from the 2326.50, (23.6%) Fibonacci retracement are underway. Immediate focus is on the 2390.01 high of 15 March, but difficulty is seen maintaining any tests, as momentum studies and the bearish Tension Indicator (not seen) continue to weaken. Increased selling pressure is expected to keep prices under pressure, with a later break...

Michael_Macdonald-XATSUK

GBP/USD continues to extend gains. Focus is now on the 1.2706 0.77% high of February, with rising momentum studies and the improving Tension Indicator (not shown) anticipating a further break towards critical resistance at the 1.2775 high of December. A later close above here will confirm a significant rally, as the October 2016 bull trend gains traction and...

Michael_Macdonald-XATSUK

The UK FTSE100 Index is finding difficulty maintaining higher levels as negative divergence unfolds on weakening momentum studies. The Tension Indicator (not shown) is also showing signs of negative divergence as it, too, turns down. Investors are expected to continue reducing positions. A break below the 7255.78 low of 27 March is highlighted, with the 7192.94...