Today's interesting charts
Comment of the Day

July 03 2013

Commentary by David Fuller

Today's interesting charts

David Fuller's view Price charts signal changes in investor perceptions, which alter money flows.

Brazil (weekly & daily) is one of the commodity producers clearly in bear market territory. The latest decline since late May is overextended but a close above 48,140 is the minimum required to indicate a loss of downward momentum. Moreover, a period of support building is likely to be required before a significant test of overhead supply can be expected.

The Euro STOXX Bank Index (weekly & daily) did not maintain today's break beneath the psychological 100 level. Nevertheless, a close above 105.20, preferably on an upward dynamic, is the minimum required to indicate that demand is regaining the upper hand.

Wall Street (weekly & daily) remains the flavour of the year among Western markets but it is still somewhat overextended relative to its 200-day MA. A break in the progression of lower rally highs since May is required to indicate that demand is strengthening relative to supply.

Japan's Nikkei 225 (weekly & daily) remains the most interesting major stock market. After three weeks to the upside in a choppy global market environment it may see a temporary consolidation of gains prior to this month's important election. Nevertheless a close beneath 12,400 would be needed to question medium-term scope for sideways to higher ranging, above the large base formation.

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