Today's interesting charts
Comment of the Day

October 21 2013

Commentary by David Fuller

Today's interesting charts

Price charts are you eyes on the world, particularly in these fast-moving markets
India's Sensex Index (weekly & daily) has been extremely choppy all year but is now testing resistance from its historic highs. This month's rally looks temporarily overextended and some consolidation appears likely. However, the rising build-up of underlying support suggests that a decisive upward breakout will eventually occur. A close under 19250 would be required to question this hypothesis. USD/INR may continue to provide clues for the stock market. Another upward surge (weakness of the Rupee) would be bearish for the Indian stock market because it would invite higher short-term interest rates.

China SHASHR (weekly & daily) appears to be in a ranging support building phase but a close beneath 2250 would further delay a retest of previous highs over the last two years in the 2600 region.

Precious metals steady above mid-year lows. This sector remains out of favour but the recent, ranging pullbacks for gold (weekly & daily), silver (weekly & daily) and platinum (weekly & daily) look like potential supporting building phases and closes beneath the mid-October lows are now required to negate this hypothesis. Palladium (weekly & daily) remains firmest within this sector and is testing previous resistance evident above $750 since January.

WTI crude oil dipped beneath the psychological $100 today (weekly 10-yr, weekly 5-yr & daily). A clear upward dynamic is necessary to negate this downward drift which more likely reflects increased production in the USA rather than weakening global demand as Brent oil (weekly 10-yr, weekly 5-yr & daily) remains quietly steady, albeit rangebound. Nevertheless, the longer oil prices range beneath their highs since 2011, the less likely we are to see another economically damaging spike as last occurred in 2007, due to shale production by more countries and the gradual increase in renewable sources of energy.
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