Today's interesting charts
Comment of the Day

September 28 2010

Commentary by David Fuller

Today's interesting charts

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Gold bullion was impressive today, reversing an early sell-off and finishing at a new high. A close beneath $985 would now be required to delay an extension of this orderly two-month short-term uptrend beyond a brief pause. However, gold has risen for eight of the last nine weeks. Therefore the next down week could mark the beginning of a reversion closer to the trend mean, represented by the rising 200-day moving average.

Wheat (CBT) has fallen back to test the August reaction lows. An upward dynamic is required to reaffirm support near current levels and to reduce the possibility of a further decline towards the base formation.

Germany (DAX) is ranging near its highs since April and reaction lows mostly show a slight upward bias. A downward dynamic on the weekly chart is now required to indicate a retest of the rising MA and psychological 6000 level before a sustained break above 6400 occurs, reaffirming the cyclical recovery.

USA (SPX) has paused to consolidate this month's impressive gains which have cleared the June to August highs, creating a short-term overbought condition in the process. A break back beneath the MA would now be required to delay this recovery beyond a brief pause before a sustained push above 1150 reaffirms scope for at least a test of the April high.

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